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A Virginia Beach biotech not-for-profit company has acquired the wound-care business of a Durham, North Carolina, medical device firm in a deal valued at $85 million.
LifeNet Health, a developer of products like skin grafts and heart valves, is purchasing Bioventus’ wound-care business and line of products, the organization announced May 10.
Douglas Wilson, LifeNet executive vice president, said the deal stemmed from an existing relationship with Bioventus. LifeNet has processed the company’s TheraSkin graft since 2010. The graft is used for issues like diabetic foot ulcers, venous leg ulcers and other slow-healing wounds.
When Bioventus announced that the wound-care business wouldn’t be key to its future, Wilson said LifeNet leaders were concerned.
“We wanted to make sure that this product implant did not go away,” Wilson said.
The acquisition includes a three-product portfolio, as well as a distribution sales force of 90 employees. Some of the employees will be relocating to Virginia Beach, but most will be out in the field, Wilson said.
Chronic wounds affect more than 8 million Americans and cost at least $28 million to treat annually, according to a 2018 study in the Value in Health journal.
“Non-healing wounds are a modern health care crisis,” LifeNet President and CEO Rony Thomas said in the announcement. “Our goal is to continue re-imagining wound care through increased access to best-in-class wound care products that are both clinically effective and affordable, helping patients recover and avoid amputation and poor health outcomes.”
Inside Business
LifeNet employs around 1,500 people, Wilson said, with around 900 working in Virginia. The company’s headquarters is located off Princess Anne Road across from Sentara Princess Anne Hospital.
LifeNet is one of only a few organ procurement organizations in the United States, which are tasked with guiding families through the organ donation process, as well as handling and transporting the organs to medical facilities.
The not-for-profit organization also creates everything from heart valves to skin tissue grafts and knee ligaments in its implant division.
In 2021, LifeNet generated around $455 million in revenue, according to the latest publicly available tax documents.
The $85 million Bioventus deal includes $35 million in cash at close, a $5 million cash payment deferred 18 months and $45 million in potential earn-out payments, according to the company.
Wilson also said the acquisition could lead to more expansion efforts in the future.
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com