The BioStructures Acquisition The BioStructures acquisition allows Bioventus to differentiate its surgical orthobiologics portfolio while maintaining its focus in spine. Russell Cook and Duraid Antone founded BioStructures in 2009 and grew it to eight products, including its signature Signafuse bioactive bone graft putty. In 2014, the company had 61 distributors selling its products nationwide. Bioventus acquired BioStructures’ full products and R&D pipeline. Based on the pipeline, the first commercialization priority is a collagen sponge product, Tung says. BioStructures was developing a proprietary process for the suspension of biphasic mineral granules in a collagen sponge. The product has been in development for four years and is expected to enter the market in the next two years. “The addition of BioStructures’ world-class synthetic BGS along with other licensed products significantly broadens our portfolio and allows us to address large segments of the BGS market that we have not addressed before,” Tung says. Orthobiologic Investments The orthobiologic market is challenged by a lack of investments from companies and venture capital firms, Tung and Cook say. Increased regulatory requirements have led to increased cost and time to market, stifling the development of novel technologies. Cook estimates that data collected through an animal study for regulatory clearance would cost as little as $50,000 in 2003. Today, the expanded clinical criteria needed for regulatory clearance could cost a company between $1 million and $2 million. | M&A Advice from Russell Cook The Bioventus deal was not the first such undertaking for Mr. Cook and his business partner, Mr. Antone. The two founded Radius Medical, also focused on bone graft products, and sold it to NuVasive in 2007. Mr. Cook offers three thoughts on how to position your company to sell: Don’t force it. “You realize early in the process if there is a fit or not. There’s usually a fit with regard to the sales channel as well as a fit with regard to business philosophy.” Keep the business tidy. “Be clean from a debt and revenue perspective. Also make sure that the QA, documentation and regulatory systems are in order and that your company is buttoned up from top to bottom. That puts you in a position to dictate what you would like to achieve.” Build for profitability. “Develop a company that is in business to make money and is offering products to the market that provide a solution. Develop a business to do that first. Don’t develop a business for acquisition.” |
2012 | 2013 | 2014 | 2015 | |||
Smith & Nephew forms joint venture with Essex Woodlands to create Bioventus, in order to further develop its biologics and clinical therapies division. Essex Woodlands owns 51% and Smith & Nephew 49% of the newly-formed company. | Bioventus acquires exclusive rights to Pfizer’s BMP portfolio of development programs and associated intellectual property. The portfolio includes a next-generation BMP in development, rights to rhBMP-2 and an exclusive option to a BMP program for soft tissue indications. | Bioventus entered into an agreement with Galderma to acquire international assets for DUROLANE, a product that assists in relief of osteoarthritis pain in a variety of joints. Bioventus acquires OsteoAMP, a tissue-based bone biologic product used in spine surgery, from Advanced Biologics. | Bioventus acquires BioStructures, a proprietary developer and marketer of resorbable bone graft products. The agreement includes BioStructures entire portfolio of products and research and development pipeline. |
Bioventus spent most of 2015 building an infrastructure to expand its surgical business. The company entered the surgical side of the orthopaedic industry with the acquisition of OsteoAMP® from Advanced Biologics in 2014, and followed with the acquisition of BioStructures in November 2015. With these transactions, a sales and distribution plan in...
The BioStructures Acquisition The BioStructures acquisition allows Bioventus to differentiate its surgical orthobiologics portfolio while maintaining its focus in spine. Russell Cook and Duraid Antone founded BioStructures in 2009 and grew it to eight products, including its signature Signafuse bioactive bone graft putty. In 2014, the company had 61 distributors selling its products nationwide. Bioventus acquired BioStructures’ full products and R&D pipeline. Based on the pipeline, the first commercialization priority is a collagen sponge product, Tung says. BioStructures was developing a proprietary process for the suspension of biphasic mineral granules in a collagen sponge. The product has been in development for four years and is expected to enter the market in the next two years. “The addition of BioStructures’ world-class synthetic BGS along with other licensed products significantly broadens our portfolio and allows us to address large segments of the BGS market that we have not addressed before,” Tung says. Orthobiologic Investments The orthobiologic market is challenged by a lack of investments from companies and venture capital firms, Tung and Cook say. Increased regulatory requirements have led to increased cost and time to market, stifling the development of novel technologies. Cook estimates that data collected through an animal study for regulatory clearance would cost as little as $50,000 in 2003. Today, the expanded clinical criteria needed for regulatory clearance could cost a company between $1 million and $2 million. | M&A Advice from Russell Cook The Bioventus deal was not the first such undertaking for Mr. Cook and his business partner, Mr. Antone. The two founded Radius Medical, also focused on bone graft products, and sold it to NuVasive in 2007. Mr. Cook offers three thoughts on how to position your company to sell: Don’t force it. “You realize early in the process if there is a fit or not. There’s usually a fit with regard to the sales channel as well as a fit with regard to business philosophy.” Keep the business tidy. “Be clean from a debt and revenue perspective. Also make sure that the QA, documentation and regulatory systems are in order and that your company is buttoned up from top to bottom. That puts you in a position to dictate what you would like to achieve.” Build for profitability. “Develop a company that is in business to make money and is offering products to the market that provide a solution. Develop a business to do that first. Don’t develop a business for acquisition.” |
2012 | 2013 | 2014 | 2015 | |||
Smith & Nephew forms joint venture with Essex Woodlands to create Bioventus, in order to further develop its biologics and clinical therapies division. Essex Woodlands owns 51% and Smith & Nephew 49% of the newly-formed company. | Bioventus acquires exclusive rights to Pfizer’s BMP portfolio of development programs and associated intellectual property. The portfolio includes a next-generation BMP in development, rights to rhBMP-2 and an exclusive option to a BMP program for soft tissue indications. | Bioventus entered into an agreement with Galderma to acquire international assets for DUROLANE, a product that assists in relief of osteoarthritis pain in a variety of joints. Bioventus acquires OsteoAMP, a tissue-based bone biologic product used in spine surgery, from Advanced Biologics. | Bioventus acquires BioStructures, a proprietary developer and marketer of resorbable bone graft products. The agreement includes BioStructures entire portfolio of products and research and development pipeline. |
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Carolyn LaWell is ORTHOWORLD's Chief Content Officer. She joined ORTHOWORLD in 2012 to oversee its editorial and industry education. She previously served in editor roles at B2B magazines and newspapers.