Bioventus Makes $15 Million Equity Investment in CartiHeal with an Agreed Option Structure to Acquire Company Upon Milestone Achievements

Bioventus has decided to make a $15 million equity investment in CartiHeal, the Israel-based developer of the proprietary Agili™-C implant for the treatment of joint surface lesions in traumatic and osteoarthritic joints. The investment follows the recently completed enrollment and outcome of interim analysis in CartilHeal’s investigational device exemption (IDE) multinational pivotal study. CartiHeal can secure an additional $5 million from Bioventus, if needed, for IDE study completion.

You may recall that in Bioventus made a $2.5 million investment in CartiHeal in Q1 of 2019. This new round of funding will enable CartiHeal to complete all patient follow-up in the study and submit a first application for premarket approval (PMA) to the FDA.

“The successful enrollment and outcome at the interim analysis of CartiHeal’s pivotal study for Agili-C implant is an important milestone,” said Ken Reali. “It is a testament to the strength of its continuing development program and more importantly the future potential of the Agili-C technology in addressing the large unmet need in patients with joint surface lesions. This investment underscores our belief in the novel technology and we look forward to working with the team at CartiHeal in the years to come.”

Bioventus and CartiHeal have agreed on an option structure under which Bioventus will acquire the company shortly after FDA approval of the Agili-C implant. Terms of that option structure are not disclosed.

Some early users of Agili-C have shared their insights with CartiHeal. You can see video testimonials here.