BioMimetic Therapeutics, Inc. to Sell Remaining Dental Business for Additional $40 Million Cash plus Continuation of Royalties
Published: Dec 18, 2007
FRANKLIN, Tenn.--(BUSINESS WIRE)--BioMimetic Therapeutics, Inc. (NASDAQ: BMTI) today announced the Company has entered into a definitive agreement with Luitpold Pharmaceuticals Inc., under which it will sell its remaining dental business, including the downstream formulation, fill and finish manufacturing rights of GEM 21S®, to Luitpold. Luitpold currently markets the GEM 21S product through its Osteohealth Company division. The transaction is expected to close on or about January 4, 2008. The Company will receive $40 Million in cash as a result of the transaction, plus approximately $4 million in cash from the sale of existing inventory, and royalty payments based on net sales of GEM 21S and future products in the dental and cranio-maxillofacial field. BioMimetic will receive the cash from this sale in four installments with $30 Million paid not later than 60 days of the close of the transaction, $6 Million paid not later than 18 months from close and the remaining $4 Million to be paid no later than year-end 2009.