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Business Acquisition
6 Months Ended
Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Business Acquisition Business AcquisitionOn January 20, 2022, we acquired all of the equity voting interests and completed the acquisition of OrthogenRx, Inc. (“OrthogenRx”), which is focused on the development and commercialization of hyaluronic acid (“HA”) treatments for knee pain caused by osteoarthritis and has been added to our interventional pain portfolio. The total purchase price was $130.0 million at closing less working capital adjustments. The agreement allowed for up to an additional $30.0 million payable in contingent cash consideration based on OrthogenRx’s growth in net sales during 2022 and 2023, of which we paid $10.6 million based on OrthogenRx’s 2022 net sales.
We accounted for the OrthogenRx acquisition under the acquisition method of accounting for business combinations. Accordingly, the purchase price paid was allocated to the underlying net assets in proportion to their respective fair values. Any excess of the purchase price over the estimated fair values was recorded as goodwill. The final purchase price allocation, net of cash acquired, is shown in the table below (in millions):
Accounts receivable, net$11.6 
Inventory2.8 
Other current assets0.4 
Accounts payable(5.4)
Other current liabilities(13.0)
Contingent consideration(9.2)
Other non-current assets (liabilities)(5.7)
Deferred tax liability(22.1)
Identifiable intangible assets135.6 
Goodwill21.1 
Total$116.1 
The identifiable intangible assets relating to the OrthogenRx acquisition include the following (in millions, except years):
Identifiable Intangible Asset AmountWeighted Average Useful Lives (Years)
Trademarks$1.3 10
Other134.3 14
Total$135.6 
Other intangible assets includes $126.0 million related to the OrthogenRx products that we currently market and distribute, combined into one composite intangible asset that includes customer relationships and exclusive distribution rights and $8.3 million related to OrthogenRx non-compete agreements.