Osiris Therapeutics, a stem cell therapeutic company, has agreed with NuVasive, a medical device company, to accelerate transfer of the Osteocel business.
Under the terms of amendments to the existing asset purchase and manufacturing agreements between the parties, NuVasive will assume responsibility for Osteocel processing by April 10, 2009 and has removed contingencies applicable to $30 million of the $45 million in remaining milestone payments.
Osiris is now scheduled to receive $30 million in cash or NuVasive common stock according to the following schedule: $5 million by March 31, 2009; $12.5 million by June 30, 2009; and $12.5 million by September 30, 2009.
The terms applicable to the remaining $15 million milestone payment are unchanged. This additional payment becomes due and payable when NuVasive achieves $35 million in cumulative Osteocel sales. To date Osiris has received from NuVasive $40 million in upfront and milestone payments.
Effective April 10, 2009 Osiris will cease all operations associated with Osteocel processing. Concurrent with the amendments to the asset purchase and manufacturing agreements, Osiris will transfer its Osteocel inventory to AlloSource, of Centennial, which had been processing quantities of Osteocel for Osiris and has now agreed to produce Osteocel solely for NuVasive.
NuVasive has entered into a separate outsourcing supply agreement with AlloSource for the continued manufacture of Osteocel.