Corin to be Acquired by Permira

Per terms of a signed definitive agreement, Corin will be acquired by a company backed by investment firm Permira for an undisclosed sum. The investment will fuel Corin’s next stage of development, having established itself as a direct presence in global orthopaedic markets.

U.K.-based Corin was founded in 1985. Our first written mention of a Corin product occurred with its 1996 approval under the CE Mark for the Corifix Dynamic Compression Hip Screw, followed by a FDA 510(k) approval for the plasma sprayed C-Fit Hip for cemented use. Per FDA’s database, though, the company’s first 510(k) came in 1993 for a bipolar hip.

Before that, the Rotaglide knee was among Corin’s very first products launched in 1989. By its 10th anniversary in 1998, it was used in over 15,000 patients. Rotaglide+ was the first total knee design to adopt a true mobile bearing philosophy. TaperFit cemented and Cormet resurfacing hips followed in 1995 and 1997, respectively.

In May 2002, the company was listed on the London Stock Exchange. For 2003, it reported revenues over £20MM (~US $36MM per historical exchange rates).

In 2004, Corin received a takeover offer from an unnamed company, though talks ended later that year. At the time, Corin was valued at £125MM (US $230MM).

Within 2005 came the FDA premarket approval application for the Cormet resurfacing hip, the signing of a 3-year collaboration agreement to develop a minimally invasive Percutaneous Disc Nucleus device and an exclusive 10-year U.S. marketing and distribution agreement Stryker for Cormet. In 2007, Corin gained FDA premarket approval for Cormet and Stryker commenced U.S. distribution (though Corin took over U.S. direct distribution of the device in 2011).

By 2009, the company was reporting annual revenue of £40MM (~$60MM), and for 2012—the last year for which revenue reporting is publicly available—sales reached £48MM (~US $75.46MM), flat vs. 2011. In 2013, Corin was acquired by 2IL Orthopaedics in a cash-for-shares offer valued at £30.5MM (~$48.8MM), opening new opportunities for growth.

From 2013 to 2018, Corin’s activities included:

• Co-development and launch with Optimized Ortho of a delivery/positioning platform for use with Corin’s total hip replacement devices
• Subsequent acquisition of Optimized Ortho
• Partnership with Intellijoint Surgical for the intellijoint HIP™ to complement Corin’s OPS Technology (Optimized Positioning System™)
• Subsequent FDA clearance to market OPS
• The acquisition of Wright Medical’s legacy Tornier hip and knee assets
• Expansion of a distribution agreement with FX Solutions for U.S. marketing of certain shoulder arthroplasty systems
• Collaboration with Ossis on 3D-printed custom primary and revision hips and knees
• Launch of the Trinity™ Dual Mobility hip (that works with OPS and is based on ECIMA polyethylene to reduce in vivo oxidation)
• Launch of the Unity Knee™, featuring EquiBalance™ instrumentation to address ligament balancing and soft tissue preservation during total knee replacement

ORTHOWORLD estimates Corin’s 2017 revenue at a minimum of $120MM.

Present CEO Stefano Alfonsi will continue to lead Corin alongside the current management team, focusing on customer service and software to support positioning, patient monitoring and robotics. The company’s portfolio comprises hip, knee, ankle and shoulder solutions.

This transaction, Permira’s first investment in the orthopaedic space, is expected to close in early 3Q18.

Sources: Corin; ORTHOWORLD Inc. and ORTHOWORLD estimates; InvestEgate.co.uk