Medtronic have agreed to purchase Osteotech for a total of $123 million. The deal, worth $6.50 per share, sees Medtronic acquire a leading company in the fast-growing biologics industry.
Osteotech’s differentiated portfolio of biologics includes Grafton demineralised bone matrix, MagniFuse Bone Grafts and Plexur Biocomposites, which are used in a broad range of musculoskeletal surgical procedures. The acquisition of Osteotech will complement the Medtronic Biologics business’ bone healing portfolio and expand its current presence in spine, orthopaedic trauma and dental into several additional new treatment areas including joint reconstruction, foot & ankle and sports medicine. According to Medtronic Biologics business’ general manager, Tom Guinness, the combined technical and product capabilities of both companies will also create opportunities to develop breakthrough next-generation products, “accelerating our innovation and progress in helping to alleviate pain, restore health and extend life for our patients.”
“This acquisition represents a key step in Medtronic’s strategy to build a broader business in regenerative biologics,” said Chris O’Connell, Medtronic executive vice 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 representatives – currently seeking US Food & Drug Administration clearance for the first product based upon its first-in-class HCT (Human Collagen Technology) platform – are looking to finalising the transaction smoothly and quickly, thereby continuing the company’s mission, in the words of president and CEO Sam Owusu-Akyaw, to “develop leading-edge regenerative biologics that will positively impact the lives of patients, enhance physicians’ capabilities to deliver superior surgical outcomes and enhance the gift of life to promote healing. We believe Medtronic’s global scale and scope across geographies and functions and its commitment to innovation make them an ideal partner to carry forward our mission.”