Wright Medical, a healthcare product manufacturer based in Arlington, Tennessee, began purchasing public shares of BioMimetic Therapeutics. With the shares, Wright Medical will have a 36 percent stake in BioMimetic Therapeutics, a company that specializes in regenerative medicine.
Last week, Wright Medical agreed to pay $390 million in stock, milestone payments and cash for BioMimetic. With the acquisition, the company hopes to gain a larger market share in its ankle and foot health business. According to a filing with the Securities and Exchange Commission, the company owns 10.2 million shares of the regenerative medicine company.
According to the terms of the acquisition, each share of BioMimetic (BMTI) will be worth $1.50 in cash payments plus 0.2482 shares of Wright Medical (WMGI). Wright Medical has valuated BioMimetic at $190 million based on Friday’s market close. Shareholders of BMTI will also receive a tradable unit called a “contingent value right.” A contingent value right will give BioMimetic’s shareholders the right to receive $3.50 for each share of the company. However, the contingent value right is currently pending with FDA approval of BMTI’s bone graft technology under the Augment brand.
In a prepared statement, Wright CEO and president Robert Palmisano said, "BioMimetic's products complement our existing biologics product portfolio, and, if approved by the FDA as we expect, Augment Bone Graft will provide us with a unique solution for the U.S. hindfoot and ankle fusion market that leverages the distribution capabilities of Wright's dedicated foot and ankle sales organization and our physician training capabilities."
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