The news sent BMTI shares up 72.3% on Wall Street today, where they were trading at $7.15 as of about 11:50 a.m. WMGI shares didn’t far as well, falling 2.7% to $19.50.
Orthopedic devices maker Wright hopes to use BioMimetic’s regenerative medicines portfolio to bolster its foot and ankle healing business, according to a press release.
Under the terms of the agreement, each BMTI share will translate into the right to receive $1.50 in cash plus 0.2482 shares of Wright common stock, which values BioMimetic at $190 million, based on Wright’s closing stock price of $20.01 on Friday.
BMTI shareholders will also get 1 tradable Contingent Value Right, which makes them eligible to receive up to $3.50 per share pending FDA approval of BioMimetic’s Augment bone graft and up to $3 more based on sales milestones.
The companies expect the merger to close in the 1st quarter of 2013, pending standard closing conditions, including shareholder approval.
“We believe this 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," Wright president & CEO Robert Palmisano said in prepared remarks. "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.”