Medartis intends to acquire Nextremity Solutions (NSI), developer of devices for the musculoskeletal extremity market. Total purchase price will be up to USD $70 million, and includes milestone and earn-out payments of up to $30 million. The transaction is slated to complete within 1H22, with initial products launched in early 2023.
Nextremity Solutions designs, develops and manufactures indication-specific technologies to treat fractures and deformities in lower and upper extremities. Medartis gains access to an R&D team, relationships to U.S. design surgeons, a complementary product pipeline, IP portfolio, product knowledge and a regional manufacturing base.
Medartis views this transaction as a catalyst for its extremities business in the U.S. and possibly elsewhere. Medartis U.S. will expand its distribution network and training/education. Its North American R&D center will be established in Warsaw, Indiana, where NSI is located. NSI also has a new manufacturing plant for instruments and implants. The 69,500-square-foot production area is expandable and will be used to serve the regional market needs.
Medartis CEO Christoph Brönnimann said, “In the U.S., we strengthened our sales distribution and invested into training and education capabilities. The acquisition of Nextremity Solutions is a great strategic and cultural fit. The new R&D center and modern manufacturing facility in the U.S. will be a catalyst to accelerate our extremities business in the U.S. and potentially elsewhere. I am delighted that CEO Rod K. Mayer and his leadership team will stay with the company, complementing our local management team and working with us to grow our U.S. business.”
Nextremity Solutions CEO, Rod K. Mayer, who has been in the orthopedic business for over 40 years, said, “This partnership is an exciting opportunity to jointly develop and commercialize patient-centric solutions. Medartis has an excellent reputation among U.S. upper extremity surgeons. By pooling our resources, we will make our current solutions available to more doctors and introduce further innovations to improve treatment options. We are excited to join a company that shares similar values to ours. We are both innovation- and precision-focused, work intensively with design surgeons, and are committed to patient well-being.”