My opinion is that Bioventus decision is a "canary in the coal mine" for the med device market in 2022.
I believe that this is the start of de-leveraging that many orthopedic device companies will go through. Debt is more expensive. The IPO market is closing up. Up rounds are getting rarer. Multiples are going down, etc.
I will write more about the new financial environment here.
Bioventus Cancels Proposed $415 Million Offering of Senior Notes; Reaffirms Full-Year 2022 Financial Guidance
---------original acquisition press release April 2022---------
Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or the “Company”), a global leader in innovations for active healing, today announced that it has exercised its call option to acquire CartiHeal Ltd., excluding the ownership interest already owned by Bioventus, for approximately $315 million, with an additional approximately $135 million payable contingent upon the achievement of $100 million in trailing twelve month sales. Bioventus plans to finance the acquisition with additional debt. The Company’s decision to exercise this option follows the U.S. Food and Drug Administration’s (FDA) March 29, 2022, premarket approval (PMA) of Ca...
