Franklin-based BioMimetic Therapeutics Inc. has agreed to be bought by Wright Medical Group Inc. in a deal worth up to $380 million.
According to a news release, the companies have agreed to a deal with an upfront purchase price of $190 million in cash and stock, plus contingent payments worth up to another $190 million tied to the performance of BioMimetic’s Augment bone-graft device.
BioMimetic (Nasdaq: BMTI) is still seeking Food and Drug Administration approval for Augment. Amid delays in the approval process, BioMimetic cut 25 percent of its workforce early this year.
Wright Medical Group Inc. (Nasdaq: WMGI) — based in Arlington, Tenn., outside of Memphis — is an orthopedics company with a number of devices and products for the foot and ankle market, among other sectors.
“BioMimetic is delighted to partner with a company that shares our commitment to building a world-class biologics platform,” said Dr. Samuel Lynch, CEO of BioMimetic, in a news release. “We believe that Augment Bone Graft will become an important new therapeutics option to improve patient outcomes in hindfoot and ankle fusion procedures, and that Wright Medical with its leadership position in the foot and ankle market is the ideal partner to accelerate the rapid adoption of our products around the world.”
Wright Medical CEO Robert Palmisano said the transaction will “significantly accelerate the continued transformation of our business as well as our strategy of building a world-class biologics platform and growing our foot and ankle business at well above market growth rates. BioMimetic’s products complement our existing biologics product portfolio, and, if approved by the FDA as we expect, Augment Bone Graft will provide us with a unique solution for the U.S. hindfoot and ankle fusion market that leverages the distribution capabilities of Wright’s dedicated foot and ankle sales organization and our physician-training capabilities.”
Subject to shareholder approval, the transaction is expected to close in the first quarter of 2013.
