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Wright Medical (WMGI) entered into a definitive agreement to purchase Cartiva, a manufacturer of the Synthetic Cartilage Implant (SCI) to treat arthritis in the great toe, for US $435MM in cash. The transaction is expected to close in 4Q18.
Cartiva’s SCI, which represents an alternative to fusion—the current standard of care for this application—was reportedly the first synthetic cartilage device to gain FDA approval upon receiving its PMA in July 2016. It was announced that the first commercial U.S. patient received the implant the week after the PMA.
The biocompatible, biomedical polymer implant replaces damaged cartilage with a compressible, low-friction, durable bearing surface. To date, >10,000 implants have been employed in the U.S. The device gained CE Mark approval in the European Union in 2002 and is also on the market in Australia, Brazil, Canada and Chile. Last month, Cartiva reported that five-year follow-up results demonstrated SCI’s ability to provide long-term durability in pain and functional improvements in the treatment of great toe arthritis, which is the most common arthritic condition of the foot with more than 120,000 surgeries performed annually in the U.S.
Additionally, in March, Cartiva announced that the first U.S. patient had been treated in GRIP 2, a multi-center study evaluating SCI to treat first carpometacarpal joint osteoarthritis at the base of the thumb.
The novel SCI technology and its amount of data placed Cartiva on our list of prime acquisition targets noted in THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT®. WMGI expects the acquisition of Cartiva to accelerate its core foot and ankle business. The company expects full-year 2018 Cartiva revenues at ~$35MM and 2019 guidance of ~$47MM. WMGI also updated its full-2018 revenue, excluding Cartiva, to $812MM- $822MM, up from $808MM-$820MM previously.
J.P. Morgan Securities was lead financial advisor to WMGI for the transaction. Guggenheim Securities advised Cartiva.
Source: Wright Medical
Wright Medical (WMGI) entered into a definitive agreement to purchase Cartiva, a manufacturer of the Synthetic Cartilage Implant (SCI) to treat arthritis in the great toe, for US $435MM in cash. The transaction is expected to close in 4Q18.
Cartiva’s SCI, which represents an alternative to fusion—the current standard of care for this...
Wright Medical (WMGI) entered into a definitive agreement to purchase Cartiva, a manufacturer of the Synthetic Cartilage Implant (SCI) to treat arthritis in the great toe, for US $435MM in cash. The transaction is expected to close in 4Q18.
Cartiva’s SCI, which represents an alternative to fusion—the current standard of care for this application—was reportedly the first synthetic cartilage device to gain FDA approval upon receiving its PMA in July 2016. It was announced that the first commercial U.S. patient received the implant the week after the PMA.
The biocompatible, biomedical polymer implant replaces damaged cartilage with a compressible, low-friction, durable bearing surface. To date, >10,000 implants have been employed in the U.S. The device gained CE Mark approval in the European Union in 2002 and is also on the market in Australia, Brazil, Canada and Chile. Last month, Cartiva reported that five-year follow-up results demonstrated SCI’s ability to provide long-term durability in pain and functional improvements in the treatment of great toe arthritis, which is the most common arthritic condition of the foot with more than 120,000 surgeries performed annually in the U.S.
Additionally, in March, Cartiva announced that the first U.S. patient had been treated in GRIP 2, a multi-center study evaluating SCI to treat first carpometacarpal joint osteoarthritis at the base of the thumb.
The novel SCI technology and its amount of data placed Cartiva on our list of prime acquisition targets noted in THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT®. WMGI expects the acquisition of Cartiva to accelerate its core foot and ankle business. The company expects full-year 2018 Cartiva revenues at ~$35MM and 2019 guidance of ~$47MM. WMGI also updated its full-2018 revenue, excluding Cartiva, to $812MM- $822MM, up from $808MM-$820MM previously.
J.P. Morgan Securities was lead financial advisor to WMGI for the transaction. Guggenheim Securities advised Cartiva.
Source: Wright Medical
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Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
