Bioventus is divesting its next generation bone morphogenetic protein (BMP) development program to a newly formed by Viscogliosi Brothers LLC for an undisclosed sum. The deal is expected to close in late Q318.
When completed, Bioventus will receive an equity stake in the new company formed by Viscogliosi Brothers that will work on the BMP program. 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 program gives us the opportunity to increase the R&D investment in other areas of our portfolio to support additional short and mid-term programs, while maintaining a stake in its development,” said Tony Bihl, CEO of Bioventus said in a release. “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.”
Durham, NC-based Bioventus originally acquired to the BMP portfolio of development programs from New York-based Pfizer in 2013.
The divestiture comes on the heels of Bioventus expanding its position in the allograft market through a collaboration with LifeLink Foundation, an organization dedicated to the recovery of life-saving and life-enhancing organs and tissue for transplantation therapy. The accord will have the companies work together to co-develop a next-generation bone allograft solution for use in spine and trauma surgery.