Orthovita Inc. (VITA) takes flight on sale to Stryker Corp. (SYK)

Orthovita Inc. (Nasdaq: VITA) shares rose 40.1% to $3.83 after Stryker Corp. (Nasdaq: SYK) said it would acquire the rival surgical-products maker for $316 million, or $3.85 a share. Volume for Orthovita topped 36.6 million shares, towering over an all-day average of just under 400,000.

In July 2007, Essex Woodlands Health Ventures Fund VII, LP,managed a multi-faceted deal, which was spearheaded by Partner Scott Barry. Essex Woodlands proactively contacted the company about a transaction that would address a number of issues hindering the company’s growth and development. Essex Woodlands led an equity financing of $32.5 million to remove the company’s capital overhang and became the largest shareholder of the company at the time.

The purchase price for the Malvern, Pennsylvania-based Orthovita was $3.85/share in cash in a transaction that results in the largest single upfront payment for an orthobiologics company. The purchase price represents a 58% and 67% premium to the 30-day and 60-day volume weighted average prices, for a total value transaction value of approximately $318 million.

Orthovita CEO Antony Koblish commented, “With the innovative financing initiatives which assisted our restructuring and recapitalization efforts exhibited by Essex Woodlands in general… we aggressively and successfully pursued this transaction.”

The acquisition of Orthovita, Inc. marks the third announced exit for Essex Woodlands within the past 30 days.

Tags: healthcare, nasdaq, SYK, VITA

This entry was posted on Monday, May 16th, 2011 at 4:39 pm by Glenn and is filed under Health Care Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.