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.
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.