Wright Medical Buying BioMimetic For $190M
NEW YORK (AP) -- Medical device maker Wright Medical Group Inc. plans to buy BioMimetic Therapeutics Inc. in a $190 million cash-and-stock deal to help grow its foot and ankle business.
The companies said Monday the deal could grow to $380 million if some incentives are met.
Wright Medical, based in Arlington, Tenn., said it will pay $1.50 in cash and a portion of its stock for each share of BioMimetic. That totals $6.47 per share, based on Wright Medical's Friday closing price of $20.01.
That per-share price represents a premium of 56 percent based on BioMimetic's Friday closing price of $4.15, and the company's shares rose 76 percent, or $3.15, to $7.30 in premarket trading.
BioMimetic shareholders also could receive an additional $6.50 per share if the Food and Drug Administration approves the Franklin, Tenn., company's Augment Bone Graft and if company products reach a couple of sales targets.
The FDA is reviewing the Augment Bone Graft for use in foot and ankle fusions.
The companies say the deal is expected to close in next year's first quarter. The boards of directors for both firms have unanimously approved it, but the transaction still needs BioMimetic shareholder approval.