Bioventus gains 21% on settlement with former CartiHeal shareholders
Eoneren
- Medical device maker Bioventus Inc. (BVS) added ~21% pre-market Tuesday after announcing a settlement with former shareholders of CartiHeal, an Israeli privately held firm that it acquired in July 2022.
- The agreement gives Bioventus (BVS) an option to eliminate $350M of deferred purchase price obligations plus accrued interest as part of its obligations under an amended acquisition agreement.
- Per the terms, the company gets 30 days to evaluate options to fund the remaining obligations in the amended acquisition agreement to keep CartiHeal.
- In exchange, Bioventus (BVS) agreed to pay CartiHeal shareholders $10M in cash and $150K in non-refundable expense reimbursement payment.
- Additionally, per the terms, the company will no longer be accountable for "future claims or obligations by or to the CartiHeal Sellers" that might arise according to the amended acquisition agreement.
- Bioventus' (BVS) deferred purchase price obligations composed of $215M of post-closing tranches and a $135M sales milestone payment.
- Read: Seeking Alpha contributor Zach Bristow downgraded Bioventus (BVS) to Hold from Buy after the company trimmed its FY22 guidance.