The orthopedic medtech company reached a new settlement with former CartiHeal shareholders, according to a Feb. 28 company news release. Under the agreement, Bioventus could transfer back ownership to eliminate $350 million of deferred purchase price obligations and accrued interest.
Bioventus has 30 days to evaluate its options for funding the rest of what it owes — $215 million. If it doesn’t have funding, the company will transfer back ownership of CartiHeal to former shareholders.
To get out of the deal, Bioventus would have to pay $10 million in cash and another $150,000 in nonrefundable expense reimbursement payment. Bioventus also has the option to exercise up to two extension periods of 15 days each in exchange for an additional $5 million payment per extension.
The mega-deal was first announced in April. Bioventus initially planned to splash $315 million on CartiHeal — excluding the ownership interest Bioventus already has in the company — with another $135 million payable upon the achievement of $100 million in trailing 12-month sales.
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