Stryker snaps up Orthovita for $316 million

May 16, 2011 by MassDevice staff

Orthovita officials say Stryker Corp. will pay $3.85 per share for the Malvern, Pa.-based orthopedic biologics maker in a deal valued at $316 million.

Stryker

Stryker Corp. (NYSE: SYK ) made an offer to buy Orthovita Inc. (NSDQ: VITA), a Malvern, Pa.-based orthopedic biologics maker, in an all-cash deal worth $316 million.

The deal, in which Stryker will pay $3.85 per share for the company, represents a 41 percent premium on VITA's closing price of $2.73 per share May 13. The all-cash deal is expected to close during the second quarter.

Stryker called the acquisition "highly complementary to Stryker's existing orthobiologics offering" in a statement emailed to MassDevice.com.

Orthovita makes a suite of products for the fusion, regeneration and fracture fixation of human bone, including Vitoss, a bone graft substitute, and Cortoss, a bone augmentation material.

The company reported a $1.16 million loss on $23.7 million in sales during the three months ended March 31, compared with $1.18 million in losses on $24 million in sales during the same period last year. Orthovita had just over $59.7 million in assets at the end of the quarter, including $8.3 million in cash and equivalents.

Orthovita's product line could potentially fill the hole left at Stryker by its offloaded its troubled OP-1 bone growth implants family to Japan-based Olympus Corp. for $60 million in December 2010.

The deal marked a a step towards Stryker freeing itself of the legal woes related to allegations it promoted the off-label combination of two of its bone growth products.

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