Stryker has sold its bone morphogenetic protein-7 assets to Mariel Therapeutics. The companies entered into a definitive agreement announced yesterday.
Here are five things to know about the transaction:
1. Under the terms of the agreement, Mariel will acquire more than 450 issued and pending patents for Stryker's BMP-7 related clinical and research data. The transaction will also include the associated biologic materials. In late 2010, Stryker sold its OP-1 Products to Olympus for around $60 million, intending to use a portion of the related research and development for other internal products, including BMP-7 in osteoarthritis.
2. Stryker maintains the right of first negotiation for the commercial rights in the area of osteoarthritis. The BMP-7 assets have the potential to treat osteoarthritis, chronic kidney disease and other organ fibrosis conditions. Stryker's stock price opened at $85.47, which was the daily high by mid afternoon. The company's 52-week high is $86.93 and low is $65.48. Stryker has a market cap of $32.44 billion.
3. Mariel intends to pursue a Phase IIb/III clinical trial for osteoarthritis and Phase I trials for kidney disease and Alport's disease as a result of the transaction. More than 40,000 patients have been treated with BMP-7 in reconstructive bone applications.
4. Financial terms of the transaction were not disclosed, but the move could be strategic for Stryker, which acquired assets of Small Bone Innovations in a cash transaction of $375 million last week. Trauma and extremities grew significantly for Stryker in the first quarter of 2014, up 9.4 percent in the United States. Spine and nanotechnology sales were also up over the same period last year.
5. Stryker's transaction activity has been high over the past year; last year the company acquired MAKO Surgical and is rumored to have interest in purchasing Smith & Nephew. Other key players in the orthopedic and spine device market have made huge acquisition announcements recently, including Zimmer's intent to acquire Biomet and Medtronic's intent to acquire Covidien.
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