Mr. Lukianov continued, "Our diligence on processing capacity indicates an established and growing supply stream for the product. The transaction is structured to encourage further capacity expansion as we transition this process. Once we have integrated the processing operations, we believe Osteocel will make strong contributions to our revenue growth."
C. Randal Mills, Ph.D., President and Chief Executive Officer of Osiris Therapeutics, said, "We are pleased to be working with NuVasive. This transaction allows Osiris to focus on the near-term commercial launch efforts of our stem cell drug products, knowing Osteocel is in the hands of a capable team with a track record of rapid growth in the spine market."
NuVasive expects that the transaction will add revenues of $15 million in 2008 based on the contractual terms of existing distribution agreements, and $25 million of revenue in 2009. The Company expects the transaction to be dilutive to GAAP earnings per share in 2008, however, excluding in-process R&D charge expects no dilution in either 2008 or 2009. The Company expects to honor the current 2008 distribution agreements held by Osiris. The Company plans to provide additional guidance subsequent to the acquisition closing which is expected to occur in the third quarter of 2008. At that time, the Company will have worked through the transition plans for distribution and prepared the purchase price allocation and related intangible amortization expense.
Banc of America Securities LLC is acting as financial advisor to NuVasive and DLA Piper US, LLP is legal counsel to NuVasive.
NuVasive will hold a conference call today at 5:30 p.m. ET / 2:30 p.m.
PT to discuss the acquisition. The dial-in numbers are 1-877-407-4018 for
domestic callers and 1-201-689-
|SOURCE NuVasive, Inc.|
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