Sector News

Stryker to buy orthopedic device maker Wright Medical for $4B

November 5, 2019
Life sciences

Stryker is moving to acquire fellow devicemaker Wright Medical in a $4 billion play to gain a stronger foothold in fast-growing orthopedic segments.

The Amsterdam and Memphis, Tennessee-based Wright Medical posted $836 million in global net sales for 2018, driven largely by its products for the upper and lower extremities—including multiple joint replacement, plating, fixation and fusion systems designed for shoulders, elbows, wrists, ankles and toes.

In its yearly financial report (PDF) for 2018, the company said it expects the global extremities market to grow by 7% to 10% annually, powered by the development of procedure- and anatomy-specific devices as well as an increase in total ankle replacement procedures overall.

“This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients,” Stryker Chairman and CEO Kevin Lobo said in a statement. “Wright Medical has built a successful business, and we look forward to welcoming their team to Stryker.”

Wright’s shoulder implants, replacements and accompanying procedure-planning technology would help fill some of the largest gaps in Stryker’s portfolio, comparatively speaking—while its lower extremity offerings would act as more of a complement to Stryker’s foot-focused products. Additionally, Wright would deliver its biologic bone graft, Augment, for ankle fusion indications.

Stryker will offer to buy all of Wright’s outstanding shares for $30.75 each, in cash, for a total equity value of about $4 billion. Including convertible notes and debt, Stryker said the deal has a total enterprise value reaching about $5.4 billion. Wright’s stock price jumped about 30% on the news to about $28.50, while Stryker’s dipped slightly by about 4.5% to $203.20.

The boards of directors of both companies have approved the agreement, which is expected to close in the second half of 2020 after the adoption of certain resolutions by Wright’s shareholders.

By Conor Hale

Source: Fierce Biotech

Related News

February 19, 2020

How big data could revolutionise the healthcare industry

Life sciences

LinkedIn Twitter FacebookWe generate data about ourselves all the time, the acquisition and interpretation of which is big business. In many cases, this data may be fairly trivial or inconsequential. […]

February 18, 2020

Treating a label like a machine Is transformational

Life sciences

LinkedIn Twitter FacebookIn the pharmaceutical world, labelling change management is a notoriously complex affair, made more challenging because the physical labels tend to be handled by regulatory teams and manufacturing, […]

February 18, 2020

‘Closer to the science’: Why Amgen vets Harper and Seidenberg set up their own VC shop

Life sciences

LinkedIn Twitter FacebookAfter 17 years at Amgen, head of R&D Sean Harper, M.D., was ready to get closer to the science. He reunited with his former colleague from Merck and […]