CONMED Announces Definitive Agreement to Acquire Biorez, Inc.
Through this acquisition, CONMED acquires next generation bioinductive collagen scaffold technology for application in sports medicine soft tissue healing
AUGUST 01, 2022
LARGO, Fla.--(BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced a definitive agreement to acquire privately held Biorez, Inc. (Biorez), on a cash-free, debt-free basis, for cash consideration of $85 million at closing, subject to adjustment, and up to an additional $165 million in growth-based earnout payments over a four-year period. The transaction is expected to be financed through the company's existing credit facility. The transaction is expected to close in early August 2022.
Biorez is a medical device start-up based in New Haven, CT and is focused on advancing the healing of soft tissue using its proprietary BioBrace® Implant technology. The BioBrace implant is an innovative bioinductive scaffold that is intended to reinforce soft tissue where weakness exists and facilitate healing. BioBrace® is cleared for use by the FDA in multiple product sizes.
“The addition of Biorez and its BioBrace® platform represents an important step forward for our sports medicine portfolio,” commented Curt R. Hartman, CONMED’s Chair of the Board, President, and Chief Executive Officer. “BioBrace® fits seamlessly into our existing suite of products, and we are excited to advance the next generation of healing in sports medicine. BioBrace® represents the type of high-growth, high-margin platform that drives our long-term vision for CONMED.”
Kevin Rocco, Chief Executive Officer of Biorez added, “I am proud of the Biorez team for developing an innovative healing solution that provides a new treatment option for surgeons and patients. We are thrilled to join CONMED to accelerate the growth of our technology on a global scale.”
“Kevin and his team have created an extraordinary biomedical device that can improve the standard of care in sports medicine procedures,” commented Pat Beyer, CONMED’s President of International and Global Orthopedics. “I look forward to working closely with the Biorez team and leveraging their technical experience as we work to generate clinical data and bring this product to a broader group of customers and patients.”
Financial Highlights and Update to 2022 Outlook
CONMED expects this acquisition to add approximately $1 million in revenue to its recently provided full-year 2022 revenue guidance.
CONMED expects the acquisition to be approximately $0.10 to $0.15 dilutive to adjusted cash earnings per share in 2022 and 2023, and accretive thereafter. Therefore, CONMED now expects full-year 2022 adjusted diluted net earnings per share in the range of $3.25 to $3.45.
Conference Call
The Company’s management will host a conference call today at 4:30 p.m. ET to discuss its definitive agreement to acquire Biorez, Inc.
To participate in the conference call via telephone, please click here to pre-register and obtain the dial-in number and passcode.
This conference call will also be webcast and can be accessed from the “Investors” section of CONMED's website at www.conmed.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.
Advisors
Sullivan & Cromwell LLP and DLA Piper LLP are acting as legal counsel for CONMED. Canaccord Genuity LLC is acting as financial advisor and Shipman & Goodwin LLP, Burns & Levinson LLP, and Latham & Watkins LLP are acting as legal counsel for Biorez, Inc. in connection with the transaction.
About CONMED Corporation
CONMED is a medical technology company that provides surgical devices and equipment for minimally invasive procedures. The Company’s products are used by surgeons and physicians in a variety of specialties, including orthopedics, general surgery, gynecology, thoracic surgery, and gastroenterology. For more information, visit www.conmed.com.
News Releases
CONMED Completes Acquisition of Biorez, Inc.AUGUST 09, 2022
Biorez Appoints Jeff Grebner as Director of Clinical AffairsNOVEMBER 01, 2021
Biorez Announces David Hook as Vice President of Sales as it Prepares for BioBrace® CommercializationMAY 05, 2021
Biorez Preclinical Results to be Featured in Podium Presentation at The Orthopaedic Summit: Emerging Technologies 2020DECEMBER 07, 2020
Biorez™ Raises $3.5 Million to Close Out $7 Million in Seed FinancingSEPTEMBER 09, 2020
Biorez Hosts Grand Opening Celebration at District in New HavenDECEMBER 19, 2018
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