Bioventus said today that it agreed to sell the bone morphogenetic protein technology it licensed from Pfizer (NYSE:PFE) to private equity shop that specializes in the orthopedics industry for an undisclosed amount.
Created in a 2012 spinout worth $367 million from Smith & Nephew (FTSE:SN, NYSE:SNN), Bioventus in 2013 inked a deal with Pfizer to develop a next-generation BMP product. In October 2014 the Durham, N.C.-based company acquired the OsteoAMP product line from Advanced Biologics for an undisclosed amount and folded it in to a new business group that included the Pfizer BPP program.
Today Bioventus said it agreed to deal the BMP program to PE shop Viscogliosi Bros., formed a new company to develop a next-generation BMP and one for soft tissue indications. Contingent on Viscogliosi raising enough cash to cover the deal, the transaction is slated to close during the third quarter, Bioventus said, noting that it would retain and equity interest and a non-executive board seat if the buyout goes through.
“Divesting the BMP program gives us the opportunity to increase the R&D investment in other areas of our portfolio to support additional short and mid-term programs, while maintaining a stake in its development,” CEO Tony Bihl said in prepared remarks. “We now expect to leverage resources to make additional investments that will expand and grow our portfolio in osteoarthritis, surgical and non-surgical bone healing.”
“Stimulating the body to heal itself is the future of healthcare,” added VB principal Anthony Viscogliosi. “Through this acquisition, we are fortunate for Bioventus’ effort to enable us to take the next steps of initiating a clinical program to further evaluate the BMP technology to do safer, faster, and better healing for spine fusion.”