Kensey Nash Buys Norian from Synthes
BY LAUREN UZDIENSKI, MAY 24, 2011
Kensey Nash paid $22 million to acquire the assets of Synthes' Norian subsidiary. The deal includes an R&D agreement, a supply agreement and the acquisition of a manufacturing facility. The divestiture was a condition of Synthes' settlement with the government over allegations that the company facilitated unauthorized clinical studies of Norian XR, a bone graft substitute.
Synthes almost let the clock run out on the divestiture requirement. The settlement stipulated that Norian be sold by May 24th, and the announcement came after the close yesterday afternoon. Norian has had a troubled past; the FDA and federal prosecutors intervened in 2006 on allegations that the company was misbranding the product, concerns that came to their attention after three patients died in 2003 and 2004. To settle that investigation, Synthes agreed to pay $24 million in penalties in addition to the divestiture. Notably, the sale to Kensey also includes a long-term supply agreement whereby Kensey Nash will manufacture the Norian products, and Synthes will exclusively distribute the products worldwide.
Norian's assets encompass a number of products, including the beta-tricalcium phosphate chronOS; the SynPOR Porous Polyethylene Implants; and the Norian family of calcium phosphate bone cements, which the company says includes reinforced and fast-setting products as part of the Norian Skeletal Repair System and Norian Craniofacial Repair System product lines. Kensey Nash says the acquisition will help the company "further its penetration into the regenerative medicine markets, encompassing soft tissue surgical repair, orthopaedics, sports medicine, spine and neurosurgery." Norian sales are expected to contribute $14 million to Kensey's 2011 revenues.
