Avanos Medical today announced it entered into a definitive agreement to acquire OrthogenRx for $160 million.
OrthogenRx makes viscosupplementation therapies to treat knee osteoarthritis pain, as well as commercial hyaluronic acid (HA) therapy products GenVisc 850 and TriVisc. Avanos will purchase the company for $130 million in cash at closing and an additional $30 million in contingent cash consideration upon the achievement of growth milestones related to the HA therapy products.
The acquisition will expand upon Alpharetta, Georgia-based Avanos Medical’s pain portfolio of Coolief cooled radiofrequency treatment. HA injections are a non-surgical option that can offer interim pain relief before patients transition to other treatment options like Coolief.
“The acquisition of OrthogenRx enhances our chronic pain portfolio by providing a continuum of care treatment options for patients living with knee OA,” Avanos CEO Joe Woody said in a news release. “This business is a clear strategic fit for Avanos, and one that will further strengthen our relationships with healthcare providers as we seek to become their preferred partner in treating musculoskeletal pain.”
The acquisition is expected to close in the first quarter of 2022 and is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Avanos projects that the new business will contribute $65 million in revenue in 2022.