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.”