One month after Bioventus announced its plan to acquire spine devicemaker Misonix in a $518 million deal, the orthobiologics company is lining up a reported $500 million purchase of Israeli medtech company Cartiheal.
Five details:
1. As part of Bioventus' option and equity purchase agreement with CartiHeal, the company is making a $50 million escrow payment, signaling its intent to proceed with the acquisition.
2. Bioventus made the decision after reviewing a clinical trial of CartiHeal's Agili-C implant, designed for the treatment of cartilage and osteochondral defects in the knee joint in patients without severe osteoarthritis.
The company said it sees significant commercialization and marketing potential in the product. "We believe this product could be a strong alternative for the approximately 650,000 U.S. patients annually receiving microfracture or debridement along with other cartilage treatment options," Alessandra Pavesio, Bioventus' senior vice president and chief science officer, said in an Aug. 30 news release.
3. The option may only be exercised after FDA premarket approval of the Agili-C implant — which was granted breakthrough device designation last year — and if certain other conditions in the option agreement are met.
4. CartiHealth said it plans to submit the clinical module of its premarket approval later this year.
5. In the coming quarters, Bioventus said it plans to work with CartiHeal to be ready to execute on commercialization and reimbursement plans should the potential acquisition come to fruition.