Elron warns $500m Cartiheal acquisition by Bioventus in jeopardy
Elron Ventures (TASE: ELRN) has notified the Tel aviv Stock Exchange that the $500 million sale of Israeli cartilage treatment company CartiHeal, in which it has a 27% stake, to US orthologics company Bioventus is in jeopardy.
Bioventus has announced that it has canceled the $415 million it planned to raise to finance the acquisition, due to market conditions, and it does not have enough cash in its coffers to complete the deal, although it added that it is seeking alternative financing.
Bioventus announced at the end of March that it was taking up its option to buy Cartiheal for $350 million, plus up to $150 million in milestone payments, after Cartiheal received FDA clearance for its product for growing unscarred cartilage tissues.
Published by Globes, Israel business news – en.globes.co.il – on May 10, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
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