BVS - Why Bioventus Stock Is Sinking Today
Shares of Bioventus (NASDAQ: BVS) were sinking 11% as of 10:46 a.m. ET on Monday. The decline came after the company announced that it exercised a call option to acquire CartiHeal. Bioventus previously made a $15 million equity investment in CartiHeal in 2020 and acquired an option at that time to purchase the rest of the privately held company.
Why didn't investors like this deal? Probably because of the financial terms.
Bioventus is paying $315 million to buy CartiHeal. The price tag will increase by another $135 million, though, if and when CartiHeal achieves $100 million in trailing-12-month sales. Bioventus intends to take on additional debt to fund the purchase.
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Why Bioventus Stock Is Sinking Today