OrthoSensor links with Zimmer to sell knee replacement-balancing tech

OrthoSensor scored a major co-marketing deal with Zimmer ($ZMH) that will help expand the commercial reach of its technology designed to help better balance knee replacements.

Neither side is discussing the financial details.

The agreement is a smart one for OrthoSensor, pairing the relatively young and small Florida operation with one of the biggest orthopedic device companies around. Basically, Zimmer's knee systems will be marketed with OrthoSensor's Verasense tech, which use sensors that wirelessly transmit data to surgeons so they can accomplish a more balanced knee implant fit.

Jay Pierce, OrthoSensor's president and CEO, noted in a statement that Zimmer will first use Verasense with its NextGen knee system. Expect a wider partnership if the initial deal works well.

Jeff McCaulley, president of Zimmer's reconstructive arm, pointed out that the company's NextGen product leads the industry in patient reported outcomes, but that OrthoSensor's technology will help the implant work far better overall.

"We know that component placement and soft-tissue balancing are critical to patient satisfaction and implant longevity," he said in a statement. "Our collaboration with OrthoSensor, and the ability to leverage real data in soft tissue balancing with Verasense, should allow for even more satisfied patients."

The deal should also add significant juice to OrthoSensor's growth efforts. The company has a similar co-marketing agreement with Stryker ($SYK) regarding its Triathlon knee system. Earlier this year, OrthoSensor also pulled in $15 million in fresh preferred stock financing to help fuel a broader launch of its other intelligent orthopedic devices.

- read the release