Durham, North Carolina-based Bioventus Inc. has acquired Valencia, California-based Bioness, Inc. for a possible $110 million.
The acquisition includes $45 million up-front consideration paid with cash on hand and up to $65 million of contingent consideration linked to meeting certain future milestones.
Founded in 2012, Bioventus’ product focus is to improve bone healing, bone graft efficacy and to treat osteoarthritis. Per the agreement, Bioness is now a wholly-owned subsidiary of Bioventus, its employees are now Bioventus employees who will be part of a 700+ member global team.
Founded in 2004 with the support of the Alfred Mann Foundation, Bioness develops and distributes “neuromodulation devices into the field of rehabilitation.” In doing so, Bioness furthers the stated mission of the Alfred Mann Foundation “to develop and commercialize innovative solutions for significant unmet or poorly met medical conditions.”
Bioness solutions incorporate “functional electrical stimulation (FES) systems, robotic systems and software based therapy programs providing functional and therapeutic benefits for individuals affected by central nervous system disorders and orthopedic injuries.”
Bioventus is buying Bioness’ complete product portfolio including its L300 Go, StimRouter® PNS (peripheral nerve stimulation) System, and H200 Wireless Hand Rehabilitation System. The acquisition also includes the Bioness “research and development pipeline.”
Bioventus CEO Ken Reali told OTW, “We became aware of this opportunity through our normal business development activities and thought Bioness, and its portfolio of products, was a good complement to Bioventus.”
Reali continued, “We now have the opportunity to accelerate growth to the Bioness portfolio by leveraging its existing direct sales force to reach both orthopedic and pain physicians and expanding Bioness’ market access and reimbursement processing capabilities, specifically in durable medical equipment.”
The press release also reports that in 2020, Bioness generated $40 million in revenue and had operating losses of $14 million. Bioventus expects the acquisition to “have a positive contribution to net income (excluding purchase accounting and transaction costs) by the end of year one post-close.”
