Orthopedic implant player Stryker ($SYK) has extended its acquisition tear to a purchase of limb salvage company Stanmore Implants. This is the fifth acquisition of companies or assets that Stryker has announced this year--with two of those being billion-dollar deals and the other three smaller acquisitions.
Stanmore Implants has a very particular, and special, focus--it creates implant systems for adults and juveniles to enable physicians to save the arms, legs and pelvises of patients in primary and revision surgeries necessitated by oncology, trauma and arthroplasty. The company also has a minimally invasive implant that can be lengthened electromagnetically, without surgery or anesthetic, as juvenile patients grow.
The British company has off-the-shelf systems, as well as custom, 3-D printed implants that are generated from CT scans. Stryker recently made a major commitment to 3-D printing with a new manufacturing facility this year. It's launched a handful of 3-D printed products including a spinal interbody implant as well as tibial baseplates and patellas, components of the Triathlon Tritanium Knee System and the Triathlon Tritanium Cone Augments for knee revision surgery.
"We just had a limited launch of our 3D-printed interbody device and we're getting fantastic feedback on that. And that obviously sells at a price premium," said Stryker chairman and CEO Kevin Lobo on an April earnings call. He later added, "You are seeing the 3D-printed implants taking off."
With the Stanmore acquisition, Stryker extends its potential 3-D printed offering into a highly specialized arena that it could potentially dominate.
"The acquisition of Stanmore Implants provides Stryker with differentiated technologies designed to provide the most effective solutions for orthopedic oncology surgeons," said David Floyd, group president of Stryker Orthopedics, in a statement. "This addition underscores Stryker's commitment to our core joint replacement business and expands our presence in the global orthopedic oncology market."
Stryker already offers orthopedic oncology products to treat osteosarcoma, which can require the removal of bone with the tumor that is then replaced by a prosthesis. The company markets various cements and tools used in this sort of surgery, as well as its Global Modular Replacement System that can be used to replace bone on a modular, as-needed basis in the hip, femur, knee and tibia.
"The combination of Stryker's commitment to orthopedic oncology and Stanmore's novel orthopedic oncology solutions provides a unique opportunity to impact a broader group of patients globally," said Stanmore CEO Michael Mainelli.
- here is the statement