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| Aperfix femoral implant--Courtesy of Cayenne Medical |
Zimmer Biomet Holdings ($ZBH) will acquire Cayenne Medical to add to its sports medicine offerings. The deal will augment its Sports Medicine business, which is one of its top performers. The Scottsdale, AZ-based startup markets several knee, shoulder and extremity soft-tissue repair products.
Founded in 2005, Cayenne has been quite cash efficient--raising only about $15 million, according to SEC filings. Its venture investors include Fletcher Spaght Ventures, Split Rock Partners, MB Venture Partners and Investor Growth Capital.
"With rising demand for the clinical benefits of advanced soft tissue repair and reconstruction solutions, we greatly look forward to leveraging Zimmer Biomet's scale and specialized sales capabilities to broaden and accelerate the growth of Cayenne Medical's clinically acclaimed offerings," said David Nolan, group president of Zimmer Biomet's sports medicine, extremities, trauma, biologics and surgical businesses, in a statement.
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| Crossfix II Meniscal Repair System--Courtesy of Cayenne Medical |
Zimmer Biomet doesn't break out its sports medicine revenues in its earnings statement, but here's how President and CEO David Dvorak characterized the segment during its most recent earnings call: "We achieved solid results with our sports medicine, surgical and extremities portfolios, which were offset somewhat by our trauma sales performance." Last year, Zimmer Biomet had $6 billion in net sales; that was a 28% increase over a year earlier, largely due to the Biomet acquisition.
Cayenne Medical markets knee products including AperFix, which it says is the only soft tissue multiligament system with rigid aperture fixation; CrossFix, an all-suture meniscal repair device; and iFix, for bone-tendon-bone fixation. It also markets the Quattro System, a line of shoulder products for rotator cuff repair and labral repair, as well as Short SureLock, an anchor system for extremities.
"From the beginning, Cayenne Medical has endeavored to be a leader in the soft tissue repair and reconstruction segment of sports medicine, and this combination with Zimmer Biomet will advance our mission to solve unmet needs in this clinical area, while transforming traditional techniques with minimally invasive innovations and generating compelling cost savings in the delivery of care by surgeons, surgery centers and hospitals," summed up Cayenne President and CEO David Springer.
The deal is expected to close this quarter.
- here is the release