Bioventus (NSDQ:BVS) announced today that it chose to make a $50 million escrow payment to acquire CartiHeal and its Agili-C implant.
Durham, N.C.-based Bioventus elected to make its escrow payment pursuant to its option and equity purchase agreement with CartiHeal to signal its intent to move forward with an acquisition of the company.
According to a news release, the decision came on the back of a review of a statistical analysis report of the pivotal clinical trial of Agili-C, reimbursement coding analysis and significant market diligence, including surgeon interviews, with respect to Agili-C and its commercialization opportunity and market potential.
Bioventus’ obligation to consummate the transaction is subject to the exercise of the call option under the agreement or the exercise by CartiHeal of its put option, which may only be exercised following FDA premarket approval for Agili-C, which won FDA breakthrough device designation last year. CartiHeal plans to submit the clinical module of their PMA later this year.
CartiHeal designed the Agili-C implant to treat cartilage and osteochondral defects in patients with severe osteoarthritis.
“The robust data generated from the pivotal clinical trial, a randomized controlled trial with Agili C, demonstrated superiority over surgical standard of care, microfracture and debridement, in KOOS overall compared to baseline. We believe this product could be a strong alternative for the approximately 650,000 U.S. patients annually receiving microfracture or debridement along with other cartilage treatment options,” Bioventus SVP & CSO Alessandra Pavesio said in the release. “In combination with our HA products, Agili-C represents an exciting potential new offering for our portfolio designed to address the spectrum of osteoarthritis disease.”