In a move made to strengthen the biologics and regenerative medicine business, Medtronic, Inc. bought New Jersey-based Osteotech for $123 million, the company announced Tuesday.

The acquisition will boost Medtronics' Biologics business' bone healing sector and expand its presence in spine, orthopedic trauma and dental into new treatment areas, including joint reconstruction, foot and ankle, and sports medicine.

Osteotech has been under attack by a group of unhappy investors criticizing the company’s recent financial performance, specially claiming the company's stock price has declined "markedly" and its stock has underperformed.

Osteotech responded to these points last week, stating "Osteotech stock has performed well in comparison to its peers and is continuing to improve."

Both companies look forward to developing breakthrough next-generation products, made possible by the combined technical and product capabilities of the two groups.

"If you look at Medtronics' mission statement and you look at our mission statement, you'll find a similarity," says Osteotech CEO Sam Owusu-Akyaw.

Osteotech specializes in biologic solutions for regenerative medicine.

"Medtronic has a breadth of products," Owusu-Akyaw tells DOTmed News. "Strategically, we see regenerative medicine as the future in biologics, so with that, [the acquisition] fit very well in our strategic goal of building a biologic company."

"Osteotech's products and capabilities will better position Medtronic in today's competitive musculoskeletal biologics market and also position the company more broadly for the opportunity we see in the future," said Chris O'Connell, Medtronic executive vice president and Restorative Therapies Group president, in a statement.

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