Medtronic Pads Regenerative Medicine Franchise with $123M Purchase of Osteotech
Deal expands business into joint reconstruction, foot and ankle, and sports medicine.!--h2>
Medtronic is acquiring Osteotech for $6.50 per share in cash for a total value of approximately $123 million. "This acquisition represents a key step in Medtronic's strategy to build a broader business in regenerative biologics," remarks Chris O'Connell, Medtronic evp and restorative therapies group president.
"Osteotech's products and capabilities will better position Medtronic in today's competitive musculoskeletal biologics market and also position the company more broadly for the opportunity we see in the future."
Osteotech’s technology platforms include the Grafton® demineralized family of bone matrix products, MagniFuse™ Bone Grafts, and Plexur® Biocomposites, which are utilized in a range of musculoskeletal surgical procedures. The company is currently seeking FDA clearance for the first product based on its HCT™ (human collagen technology) platform, an engineered human collagen biomaterial.
The acquisition of Osteotech will complement Medtronic’s bone-healing portfolio and expand its current presence in spine, orthopedic trauma, and dental arenas into several additional treatment areas including joint reconstruction, foot and ankle, and sports medicine. In addition, the combined technical and product capabilities will create opportunities to develop next-generation products.
"We see substantial opportunities during the next five to ten years to help more patients with biologics and regenerative therapies," says Tom McGuinness, general manager of Medtronic's biologics business.
Medtronic is headquartered in Minneapolis, while its biologic business is based in Memphis, TN. The segment markets Infuse™ Bone Graft and has a pipeline of other products including sciatica and post-op pain therapies, all of which complement its focus on applications for the spine, teeth, and orthopedic trauma.