Bioventus announced July 29 plans to acquire Misonix in a $518 million deal, and integration plans are in the works.
Bioventus CEO Ken Reali discussed the deal and the company's second quarter performance during an Aug. 10 earnings call, transcribed by Motley Fool.
Four takeaways:
1. Misonix and Bioventus are seen as complementary, and the acquisition is expected to broaden Bioventus' portfolio.
"We believe the acquisition of Misonix represents a compelling opportunity to extend our leadership and expand the breadth and depth of our offerings by adding $2 billion to our addressable market," Mr. Reali said. "We believe the complementary nature of the two businesses will give the combined company significant diversity and scale across a range of care settings, geographies and therapeutic areas. The combined product portfolio following the closing will serve large market segments across orthopedics, spine and lower extremity as well as neurosurgery."
2. Misonix plans to file key documents in September, and Bioventus has designated a team lead for the transition, Mr. Reali said. Bioventus plans to close the deal in the fourth quarter of this year.
3. Bioventus acquired Bioness, an orthopedic medical technology company, and the deal closed in March. Integration is underway, and the company is on target to have it mostly completed by the end of the year, Mr. Reali said.
4. Bioventus saw an 89.3 percent year-over-year increase in its second quarter revenue, and the company expects to see normal trends later this year.
"We continue to expect measured improvements in the operating environment as we move through 2021, fueled primarily by the increase in availability of vaccines and an increasing percentage of vaccinated Americans, as well as Canadians and Europeans, and we continue to expect a return to normalized year-over-year growth trends in the third quarter of 2021," Mr. Reali said.