NuVasive buying Osiris unit for at least $35 million
SAN DIEGO—Medical device company NuVasive Inc. said Thursday it will buy Osiris Therapeutics Inc.'s Osteocol unit, which includes a developing bone graft stem cell treatment.
The deal includes $35 million in cash plus additional future milestone payments to Osiris for up to $50 million in cash or a combination of cash and NuVasive stock. NuVasive said the deal will be funded with existing cash and is expected to close in the third quarter.
NuVasive said the deal gives it a developing stem cell technology and a way into the biotechnology market. It expects the deal to add $15 million in revenue in 2008 and $25 million in 2009, though it will cut into earnings in 2008.
Banc of America Securities LLC is acting as financial advisor to NuVasive and DLA Piper US LLP is legal counsel to NuVasive.
Shares of San Diego-based NuVasive rose 32 cents to $38.50 in after-hours trading after rising 16 cents to close at $38.18.
Shares of Columbia, Md.-based Osiris rose $1.72, or 14.6 percent, to $13.49 in after-hours trading after rising 18 cents to close at $11.77. The stock has ranged from $9.98 to $15.80 over the past year.
