Heather Hensley, a research associate at BioMimetic Therapeutics in Cool Springs, analyzes patient samples for immune response at the company's lab. / File/The Tennessean
One of Nashville's largest biotech firms, BioMimetic Therapeutics Inc., is being purchased by a Memphis-based competitor as part of a deal worth $380 million.
BioMimetic, which is developing a new bone graft product under final FDA review, will now be able to tap into Wright's established sales network to help eventually sell its new Augment Bone Graft product.
Wright Medical Group Inc. (NASDAQ: WMGI) is a global orthopaedic medical device company focused on surgical solutions for the foot and ankle market. Last year, it recorded revenue of more than $500 million.
BioMimetic (NASDAQ: BMTI), meanwhile, recorded less than $2 million last year, and was not expected to see any significant revenue until Augment receives final FDA approval. The FDA approval process has taken longer than company officials expected, because of pending questions over Augment's clinical trials. The company had originally hoped for approval by late 2011, but it now sales the approval may come sometime next year or in early 2014.
Earlier this year, BioMimetic had to cut 25 percent of its workforce in order to save cash because of the delay.
Still, both companies said they believe that Augment will eventually be approved an on the market.
"We believe this transaction will significantly accelerate the continued transformation of our business as well as our strategy of building a world-class biologics platform," said Robert Palmisano, president and CEO of Wright Medical.
The deal is expected to close in the first quarter of 2013, pending regulatory approvals.
For the deal to be worth nearly $400 million, however, BioMimetic's signature project will still need to get final FDA approval and hit certain sales milestones over the next two years. The upfront value of the deal is worth about $190 million.