Wound Care Business in Crisis

BioAventis has agreed to sell its wound business to LifeNet Health, which includes skin substitutes TheraSkin and TheraGenesis. The transaction includes a total cash consideration of $85 million.

Industry insights into this move

Bioventus bought Misonix, primarily for the BoneScapel product to be used in the spine. The deal also included TheraSkin, TheraGenesis, and SonicOne, a reasonably comprehensive wound portfolio.

BioAventis has agreed to sell its wound business to LifeNet Health, which includes skin substitutes TheraSkin and TheraGenesis. The transaction includes a total cash consideration of $85 million.

Why is everyone worried about the wound care market?

The problem with wound care is that it is a vastly different model than orthopedics, with a complex reimbursement structure for skin substitutes. CMS is proposing changes to the reimbursement of skin substitutes, dramatically impacting the wound care market. This change would reclassify all cellular and/or tissue-based products (CTPs) for skin wounds as “supplies incident to a physician service,” and package payment for these “supplies” into the practice expense associated with that service. This will kill the office-based skin substitute business for most orthopedic and podiatric practices.