By Bruce Japsen | Providing a boost to Baxter International Inc.’s fast-growing
regenerative medicine business, the medical product giant said it would
buy a London developer of next-generation bone graft material for up to
$330 million.
 
The Deerfield-based maker of blood therapies and
medical devices, said privately held ApaTech will bring a new business
that makes “synthetic bone repair materials for orthopedic and dental
applications,” as part of its business researching and developing bone
graft technologies, the companies said in a joint press release.

“This is a significant step in enhancing Baxter’s position in the rapidly growing orthobiologics space, and our leadership in regenerative medicine,” said Ron Lloyd, vice president and general manager of Baxter’s biotherapeutics and regenerative medicine business.
 
As part of the deal, Baxter will make an upfront cash payment of $240 million and additional payments of up to $90 million should certain ApaTech products achieve “sales milestones.”

ApaTech reported about $60 million in annual sales last year. The addition of the business is expected to be a boost to Baxter’s fast-growing regenerative medicine business that already includes so-called biosurgery products that seal wounds and stop bleeding without the use sutures or stitches.

Regenerative medicine sales were up nearly 8 percent to $442 million last year compared to $408 million the year before. Meanwhile, Baxter’s total company sales were up 2 percent last year to $12.6 billion.