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news.NuVasive has acquired Osteocel biologics business from Osiris Therapeutics for $35 million in cash, plus additional milestone-based contingent payments not to exceed $50 million in either cash or stock, at NuVasive's election. The core of the Osteocel business is a proprietary adult stem cell bone graft product.
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NuVasive is making a closing payment of $35 million in cash. Osiris will continue to supply Osteocel to NuVasive for a period of 18 months following the closing, and will be eligible to receive up to a total of $22.5 million in milestones related to product supply.
NuVasive will also make a payment of $15 million upon achieving Osteocel sales of $35 million. Lastly, the dedicated processing facility for Osteocel will be transferred to NuVasive at the end of the 18 month supply period and NuVasive will make a payment of up to $12.5 million at that time. The total maximum consideration is $85 million.
NuVasive expects that the Osteocel biologics business will add revenues of $15 million in 2008, based on the contractual terms of existing distribution agreements, and $25 million of revenue in 2009, when Osteocel will be transitioned to NuVasive’s exclusive sales force.
Alex Lukianov, chairman and CEO of NuVasive, said: “We are pleased to complete the acquisition of the Osteocel biologics business, which represents a significant milestone in our strategy to expand our product portfolio with synergistic and innovative technologies.”