Stryker has entered into a definitive agreement with Olympus for the sale of its OP-1 product family which includes OP-1 Implant, OP-1 Putty, Opgenra and Osigraft, for use in orthopaedic bone applications, for $60m.
The transaction also includes the sale of the manufacturing facility in Lebanon, New Hampshire.
Under the agreement, Stryker will redirect a portion of the related R&D spending to other internal projects which it believes offers the potential for greater shareholder returns including its clinical efforts already underway with BMP-7 for potential use in osteoarthritis and research into other non-orthopaedic applications.
As a result of agreement, Stryker reported that it will incur a one-time non cash charge of approximately $75 to $80m (net of income tax benefit) in the fourth quarter to reflect the anticipated loss on the sale of the previously described assets, which will reduce diluted net earnings per share by approximately $0.19 to $0.20.