Kensey Nash Corp. (NSDQ:KNSY) entered into a manufacturing deal with London-based Orteq Sports Medicine that includes a minority equity investment in the company.
Orteq filed with the Food & Drug Administration for approval of a clinical trial on its Actifit bio-compatible synthetic meniscal repair scaffold, and if the agency approves the trial, Kensey Nash will invest an additional $1 million in Orteq. The device is already available in Europe.
On a cumulative basis the investment will reach "approximately $5 million which includes the exclusive worldwide manufacturing rights and represents an approximate 10 percent ownership in Orteq," according to Kensey Nash. Under the terms of the agreement, the Exton, Pa.-based regenerative medicine developer "will receive a transfer price and royalties," according to the company. The companies did not disclose any other financial details related to the deal.
“We believe Orteq’s Actifit meniscus repair product can provide a safe and effective repair that will address over a $1 billion target market potential in sports medicine. We look forward to a successful and long term relationship,” Kensey Nash CEO Joseph Kaufmann said in prepared remarks.