Opus purchase to boost ArthroCare's sports med business
This article was originally published in Clinica
ArthroCare is to acquire Opus Medical, a private developer of soft tissue orthopaedic repair systems, in a cash-and-stock transaction valued at approximately $130m. Sunnyvale, California-based ArthroCare has also agreed to a contingent payment based on Opus' 2005 net sales. The purchase includes Opus' lead product, the AutoCuff anchoring system, designed to facilitate the performance of total arthroscopic rotator cuff surgery for shoulder injuries. The system, which incorporates the SmartStitch suturing device and the Magnum knotless fixation implant, can be used in combination with ArthroCare's line of Coblation-based arthroscopic tissue modification or ablation devices, such as its ArthroWands. According to Michael Baker, president and CEO of ArthroCare, the AutoCuff System is "on track" to meet its revenue target of $16-17m by the end of this year. Since its launch in August 2003, the system has been used in more than 20,000 rotator cuff repair surgeries to date. "For a new product to capture this level of market share within a year of commercial availability is remarkable," says Mr Baker. "The addition of the AutoCuff System to our sports medicine product line will enable us to accelerate the execution of our strategic plan by at least two years," adds Jim Pacek, president of ArthroCare's sports medicine division. The company estimates that the acquisition will enable its sports medicine unit to grow by over 25% in fiscal 2005. It also projects overall product revenues for that year to increase by over 30% compared with 2004.
You may also be interested in...
A recent Department of Health and Human Services proposal to review regulations every 10 years may mean good things for the device industry, said David Hoffmeister, partner, Wilson Sonsini Goodrich & Rosati.
Aker BioMarine seeks supplement firms to use its EPA/DHA innovation bound by lysophosphatidylcholine to enable the fatty acids to pass through the blood-brain and blood-retinal barriers and boost of eye and brain health benefits. It will submit an NDI notificaion in the US during 2022.
The Environmental Working Group and Scientific Analytical Institute say inadequate testing of talc-containing personal-care products is to blame for findings of asbestos in cosmetics, including three of 21 powder-based cosmetics SAI analyzed at EWG’s request. They continue to push for updated testing standards that include electron microscopy as a core component.