This is a sign of the financial situation in late 2022 where acquirers have a lower tolerance for risk.
Original deal was $315M up front + $100M if future milestones are met.
Revised deal is $100M up front + $215M if future milestones are met.
Is BioVentus taking advantage of the new financial macro landscape to put less capitial up front?
Or is BioVentus having to finance the deal with higher debt rates?
Read my alert in May - WARNING: The tightening is beginning.
NEW PRESS RELEASE
Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or the “Company”), a global leader in innovations for active healing, announced today that it has entered into an amendment to the Option and Equity Purchase Agreement for its pending acquisition of CartiHeal (“Amended Acquisition Agreement”).
“CartiHeal represents an important breakthrough for the treatment of osteoarthritis and osteochondral defects of the knee with significant long-term potential, and we are excited to have reached an amendment that we believe will be favorable to our stakeholders and enable us to complete the acquisition,” commented Ken Reali, Bioventus’ chief executive officer. “The ability to defer a significant portion of the ...
