SAN DIEGO, March 30 /PRNewswire-FirstCall/ — NuVasive, Inc. (Nasdaq: NUVA – News), a medical device company focused on developing products for minimally disruptive surgical treatments for the spine, announced today that due to the successful scale-up of the supply of Osteocel, NuVasive has accelerated the transfer of the processing of Osteocel Plus from Osiris Therapeutics (Nasdaq: OSIR – News) to its own exclusive supply chain.
Since the May 2008 announcement of the original transaction, the companies have successfully worked to increase production and transfer the technical know-how and related intellectual property to NuVasive. Due to NuVasive’s confidence in its ability to supply product to support its planned sales growth of Osteocel Plus, the companies have decided to eliminate the performance contingencies applicable to $30 million of the $45 million in remaining milestones.
The $30 million in milestones is scheduled to be paid as follows:
March 31, 2009 $5.0M
June 30, 2009 $12.5M
September 30, 2009 $12.5M
The terms applicable to the remaining $15 million milestone payment, which is due upon NuVasive achieving $35 million in cumulative sales of Osteocel, remain unchanged. To date, NuVasive has made a total of $40 million in up-front and milestone payments. The total potential consideration of $85 million remains unchanged.