Wright Medical ($WMGI), an orthopedic device maker, is now the proud new owner of regenerative medicine company BioMimetic Therapeutics ($BMTI). The $190 million-plus cash and stock acquisition deal closed at the end of February.
Wright initially announced its bid in November, which could hit as high as $380 million assuming certain development and regulatory milestones can be met. Those milestones will depend on BioMimetic's Augment Bone Graft, which is awaiting FDA approval as early as April 2013.
The deal includes $42.5 million in cash and 7 million shares of Wright common stock.
Wright, a rumored acquisition target, is creating something potentially quite big by joining forces with its fellow Tennessee company. The idea is that BioMimetic's tech will help boost Wright's foot and ankle reconstruction business, particularly after Augment gains FDA approval. And Augment can reach more customers globally by relying on Wright's global sales infrastructure.
BioMimetic submitted a final PMA application for Augment last year, potentially the first product of its kind to join the U.S. orthopedics market in about a decade. An FDA panel ruled the product safe and effective as an alternative to autograft in hindfoot and ankle fusions, but regulators issued a non-approvable letter in January 2012, and BioMimetic has since submitted additional requested data to address any issues.
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