NuVasive Buying Cervitech For $80 Million

SAN DIEGO (AP) — Medical device company NuVasive Inc. said Wednesday it is buying New Jersey-based Cervitech Inc. for up to $80 million, obtaining a potential disc replacement system.

The maker of surgical treatments for spine disorders will pay $47 million upfront with an additional contingent payment of $33 million following Food and Drug Administration approval of Cervitech's PCM cervical disc system. The device is currently in clinical trials scheduled to be completed by the fourth-quarter. NuVasive said it anticipates asking for FDA approval in the first quarter of 2010.

The company said it expects modest sales outside the U.S., with annual revenue of about $100 million within three years of the product hitting the market in the U.S.

NuVasive said all payments may be made in up to 50 percent of NuVasive stock, at the company's discretion. The buyout will be dilutive in 2009.