Extremities, Emerging Markets Continue To Top Ortho M&As
With hip and knee joint markets still registering slow to modest growth, orthopedic companies looking to add bulk to their bottom line through mergers and acquisitions have pursued two distinct directions – the extremities and emerging markets.
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While the mature hips, knees, and spine segments of the orthopedics industry are growing by low single-digit rates, some sectors of the extremity industry are growing by 13% to 14%. We profile three companies in different sectors of extremities: Conventus Orthopaedics, in the hand and wrist market; Nextremity Solutions, working on devices for the forefoot; and Cartiva Medical, with a cartilage platform and an initial focus on the great toe.
Wright Medical’s decision to sell its hip and knee business wasn’t entirely unexpected. The buyer, the Chinese company MicroPort, may have surprised some, but changes in orthopedics and the device industry as a whole could make such deals more common.
To the surprise of many, the FDA issued a “not approvable” letter to Wright Medical Group for its Augment biologic bone graft. Now company executives must figure out what to do next to grow in the extremities space.