Bioventus has entered into a definitive agreement to divest its next-generation bone morphogenetic protein (BMP) development programme to a new company formed by Viscogliosi Brothers, a private equity investment firm focused on developing innovative neuromusculoskeletal technologies.
Bioventus acquired the exclusive, worldwide license to the BMP portfolio of development programmes and associated intellectual property from Pfizer in 2013. The portfolio, which will now be sold to Viscogliosi Brothers, includes the next-generation BMP in development, as well as BMP programme for soft tissue indications.
The transaction is expected to close late in the third quarter of the fiscal year and is conditional on Viscogliosi Brothers having raised the requisite funds to complete the sale. When completed, Bioventus will receive an equity stake in the new company formed by Viscogliosi Brothers that will work on the BMP programme. In addition, Bioventus will have an observational board seat to follow the progress being made as the work continues. The parties have agreed not to disclose the sale price.
“Divesting the BMP programme gives us the opportunity to increase the research and development investment in other areas of our portfolio to support additional short and mid-term programmes, while maintaining a stake in its development,” comments Tony Bihl, CEO of Bioventus. “We now expect to leverage resources to make additional investments that will expand and grow our portfolio in osteoarthritis, surgical and non-surgical bone healing.”
“Stimulating the body to heal itself is the future of healthcare,” says Anthony G Viscogliosi, one of three principals of Viscogliosi Brothers. “Viscogliosi Brothers has formed a new company to actualise this future by acquiring the next generation BMP development programme of Bioventus. Through this acquisition, we are fortunate for Bioventus’ effort to enable us to take the next steps of initiating a clinical program to further evaluate the BMP technology to do safer, faster, and better healing for spine fusion.”