Through the acquisition, CONMED will benefit from Biorez’s next-generation bio-inductive collagen scaffold technology for application in sports medicine soft tissue healing
CONMED to acquire Biorez. (Credit: Piron Guillaume on Unsplash)
CONMED has entered into a definitive agreement to acquire Connecticut-based medical device start-up Biorez for a cash consideration of $85m, on a cash-free, debt-free basis.
In addition to the cash consideration, the medical technology company will make additional growth-based payments of up to $165m, over a period of four years.
Biorez is focused on advancing the healing of soft tissue and has developed its BioBrace Implant technology.
Its BioBrace implant is an FDA-approved, advanced bio-inductive scaffold, intended to strengthen the soft tissue with weakness, and facilitates healing.
CONMED president and chief executive officer Curt Hartman said: “The addition of Biorez and its BioBrace platform represents an important step forward for our sports medicine portfolio.
“BioBrace fits seamlessly into our existing suite of products, and we are excited to advance the next generation of healing in sports medicine. BioBrace represents the type of high-growth, high-margin platform that drives our long-term vision for CONMED.”
Biorez chief executive officer Kevin Rocco said: “I am proud of the Biorez team for developing an innovative healing solution that provides a new treatment option for surgeons and patients.”
CONMED develops and markets surgical and patient monitoring products and services, used in orthopaedic, general surgery, gynaecology, thoracic surgery, and gastroenterology.
Through the acquisition, the company will benefit from Biorez’s next-generation bio-inductive collagen scaffold technology for application in sports medicine soft tissue healing.
CONMED intends to finance the transaction, which is expected to complete this month, through its existing credit facility.
The company said that the acquisition would add around $1m in revenue to its recent full-year 2022 revenue guidance.
CONMED global orthopaedics president Pat Beyer said: “Kevin and his team have created an extraordinary biomedical device that can improve the standard of care in sports medicine procedures.
“I look forward to working closely with the Biorez team and leveraging their technical experience as we work to generate clinical data and bring this product to a broader group of customers and patients.”
Sullivan & Cromwell and DLA Piper served as legal counsel for CONMED, while Canaccord Genuity served as a financial advisor, Shipman & Goodwin, Burns & Levinson, and Latham & Watkins as legal counsel to Biorez, on the transaction.