Bioventus has entered into a definitive agreement to divest its next generation bone morphogenetic protein (BMP) development program to a new company formed by Viscogliosi Brothers, LLC (VB), a private equity investment firm focused on developing innovative neuromusculoskeletal technologies. Bioventus is a global leader in orthobiologic solutions.

The company acquired the exclusive, worldwide license to the BMP portfolio of development programs and associated intellectual property from Pfizer, Inc., in 2013. The portfolio, which will now be sold to VB, includes the next-generation BMP in development, as well as a BMP program for soft tissue indications.

The transaction is expected to close in late Q3 and is conditional on VB having raised the requisite funds to complete the sale. When completed, Bioventus will receive an equity stake in the new company formed by Viscogliosi Brothers that will work on the BMP program. In addition, Bioventus will have an observational board seat to follow the progress being made as the work continues. The parties have agreed not to disclose the sale price.

“Divesting the BMP program gives us the opportunity to increase the R&D investment in other areas of our portfolio to support additional short and mid-term programs, while maintaining a stake in its development,” said Tony Bihl, CEO of Bioventus. “We now expect to leverage resources to make additional investments that will expand and grow our portfolio in osteoarthritis, surgical and non-surgical bone healing.”