Zimmer Biomet Holdings, Inc., a global leader in musculoskeletal health care, entered into an innovative, outsourced product development arrangement with a private equity firm.
Under the arrangement, Zimmer Biomet transferred its rights in a portfolio of development-stage products to a newly organized company (NewCo) – created, managed and funded by the private equity partner for the sole purpose of pursuing the development and regulatory approval of the products. Acting as a service provider to NewCo, Zimmer Biomet will continue to participate in the development of the products, which will be off-balance-sheet for financial and accounting purposes. As each product receives regulatory approval, Zimmer Biomet will repurchase it from NewCo for a pre-agreed price and under pre-agreed terms and conditions. The NewCo structure was launched in July 2020 and has the potential to play an important role in Zimmer Biomet’s R&D activities for many years to come.
Faegre Drinker represented Zimmer Biomet in the deal.