Under the terms of the agreement, NuVasive will acquire the Osteocel biologics business from Osiris for $35 million in cash at closing, plus additional milestone-based contingent payments not to exceed $50 million in either cash or a combination of cash and stock, at the company’s election. The purchase price will be funded out of available cash and the transaction is not subject to financing conditions. The company presently anticipates that the closing will occur in the third quarter of 2008, subject to Osiris stockholder approval and customary regulatory approvals.
The Osteocel business includes a proprietary adult stem cell bone graft product containing beneficial properties similar to autograft, as well as a processing facility with significant supply stream capacity.
Alex Lukianov, chairman and CEO, said: “This acquisition directly supports our strategy of complementing our product suite with innovative technologies. Osteocel provides our exclusive sales force with a unique stem cell-based bone graft that is synergistic with our Formagraft product and significantly enhances our biologics offering.”