Wright Medical Group is buying Brentwood-based Biomimetic, in a deal worth almost $400 million. Wright is hoping to cash in on BioMimetic’s signature product that’s approved for use in Canada and Australia, but not in the US.
For more than two years, BioMimetic has been working to get the FDA to sign off on Augment. It’s supposed to help the body grow new bone tissue, eliminating the need for bone grafts. The delays have put a financial strain on the company. Earlier this year, it cut a quarter of its staff, leaving about 50 workers.
Robert Palimisano is CEO of Memphis-based Wright Medical Group, which specializes in orthopedic implants and has developed products similar to Augment.
“Don’t forget, we have a business in this. This isn’t new to us. We have people that are involved in these kinds of biologics for ten-plus years in our company. So, we’re not just looking at some kind of technology that’s on the periphery of what we do. This is something we have spend a lot of time on. That’s why, I think, we decided to move ahead now rather than later.”
Palimisano says he’s confident the FDA will finally approve Augment for American use, by the middle to end of next year.
Wright Medical is paying $190 million for BioMimetic. The company’s shareholders will get another 190 million if Augment wins approval.