Zimmer Biomet to Acquire Cayenne Medical

By Julie A. Vetalice

Zimmer Biomet (ZBH) entered into a definitive agreement to acquire Cayenne Medical within 2Q16. Terms of the transaction were not disclosed.

As noted in this year's Annual Report, Zimmer Biomet is among a group of industry players that we expect will expand their arthroscopy/soft tissue (AR/ST) portfolios while complementing other product lines, such as joint reconstruction. This transaction fits that bill.

Of the four largest orthopaedic device companies by revenue (DePuy Synthes, ZBH, Stryker and Smith & Nephew), ZBH is the only one not among the top players in AR/ST, with only ~2% of its 2015 revenue attributable to that segment.

Cayenne's lineup includes the CrossFix® II to support an all-inside method for meniscal repair, the BioWick™ SureLock™ Interpositional Scaffold Wick for rotator cuff repair, the Mirror™ Partial Knee, etc.

The company's first FDA 510(k) clearance occurred in 4Q06, for the AperFix Femoral Implant; a steady cadence of clearances and product launches has continued since then.

Notably, Cayenne launched the Mirror Partial Knee in 1Q14, after acquiring it earlier in that same quarter. Mirror is designed to allow surgeons to use a patient’s own joint ligaments to guide proper implant placement. In 1Q15, the company announced preliminary 2-year study results indicating that Mirror yielded short-term outcomes that were equivalent to the most ideal unicompartmental knee arthroplasty results then published to date.

Wesley Johnson, General Manager & Vice President of Cayenne Medical, is a panelist at OMTEC 2016: Device Innovation of the Future.

Sources: Zimmer Biomet, Inc.; ORTHOWORLD Inc.

Product Labels: Traditional Soft Tissue Repair, Knee Replacement

Tags: M&A