OrthogenRx Inc., which has been weighing a trio of options for its financial future, decided to accept a buyout offer from a medical equipment manufacturer in Georgia. John George covered the $160M transaction for the Philadelphia Business Journal.

Founded in 2012, OrthogenRx specializes in therapies used to treat knee osteoarthritis pain. Its injectable treatments act as a lubricant/shock absorber for worn-out joints.

The company’s arrangement with the purchaser, Avanos Medical Inc., comprises a $160 million payment when the deal closes and $30 million more, contingent on hitting product milestones.

Michael Daley, OrthogenRx’s co-CEO, said the decision for the otherwise healthy firm was a matter of mapping the most positive path forward.

“We were doing well, but we only have 29 employees,” he said. “We got to that point where we had one of three decisions to make. We could either keep going as we were, using distributors and building out our internal sales team. We could acquire another company to increase revenue and our reach. Or we could be acquired by somebody who has an existing infrastructure.”

The Doylestown site will be retained following the expected closure of the deal in 1Q2022, given appropriate regulatory approval.

More on this story is at the Philadelphia Business Journal.