Durham, North Carolina-based Bioventus will pay about $315 million to buy the company, excluding the stake already owned by Bioventus after it made a $50 million escrow payment last year.
The deal also includes the potential for Bioventus to pay up to $135 million more if CartiHeal can hit $100 million in trailing 12-month sales. Bioventus plans to finance the acquisition with debt.
The transaction is expected to close in the second quarter, followed by a limited market release in the U.S. in the third quarter.
“CartiHeal represents an important breakthrough for the treatment of osteoarthritis, and we are excited to bring this complementary product into our growing portfolio of medical devices,” Bioventus CEO Ken Reali said in a news release. “CartiHeal addresses an unmet need in joint preservation and cartilage regeneration for approximately 675,000 U.S. patients annually, representing an estimated $1.3 billion market opportunity for Bioventus. The CartiHeal team has done a tremendous job developing the implant, as evidenced by strong clinical data demonstrating clinical superiority over microfracture or debridement.”