US-based Avanos Medical has agreed to acquire medical device company OrthogenRx in a deal valued at around $160m.

OrthogenRx is engaged in the development and commercialisation of treatments for knee pain caused by osteoarthritis (OA). It produces commercial hyaluronic acid (HA) therapy products called GenVisc 850 and TriVisc.

The deal includes a payment of $130m in cash at closing, as well as an additional $30m based on the achievement of growth milestones linked to GenVisc 850 and TriVisc products.

In a statement, OrthogenRx co-presidents and co-CEOs Michael Daley and David Owens said: “We are extremely proud of our team’s accomplishments, and finding a partner such as Avanos with a similar culture, dedication and focus on patient care is exciting and important for OrthogenRx.

“This is truly a synergistic integration that creates value for all stakeholders as well as future opportunities for our existing products and pipeline.”

GenVisc 850 and TriVisc products already secured approval from the US Food and Drug Administration (FDA) to treat OA knee pain in patients who have failed to respond adequately to conservative, non-pharmacologic therapy and simple analgesics.

Both products are said to complement Avanos’ pain portfolio of COOLIEF cooled radiofrequency treatment for knee OA.

The COOLIEF system features a newly designed RF generator, peristaltic pump and therapy cables, to enable physicians perform all kinds of procedures including cooled, standard, pulsed, TransDiscal and dual Bipolar RF

Avanos CEO Joe Woody said: “The acquisition of OrthogenRx enhances our chronic pain portfolio by providing continuum of care treatment options for patients living with knee OA.

“This business is a clear strategic fit for Avanos, and one that will further strengthen our relationships with healthcare providers as we seek to become their preferred partner in treating musculoskeletal pain.”

Subject to customary closing conditions including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the deal is expected to be completed in the first quarter of next year.

Alston & Bird is acting as legal counsel to Avanos in connection with the transaction, while Canaccord Genuity is serving as financial advisor to OrthogenRx and Blank Rome is acting as its legal counsel.