Zimmer Biomet offers $275M to absorb tendon implant maker Embody

Zimmer Biomet aims to build out its sports medicine portfolio by acquiring Embody, a collagen implant developer focused on repairing tendons, ligaments and torn rotator cuffs.

The orthopedics deal includes an offer of $155 million upfront plus up to an extra $120 million should Embody’s products obtain new regulatory approvals and clear specific sales milestones in the three years after the acquisition, which is expected to close next month.

In its announcement, Zimmer Biomet President and CEO Bryan Hanson described the move as an important step in the company’s ongoing transformation, after it spun out its spine and dentistry-focused businesses into a separate company—dubbed ZimVie—last March.

Virginia-based Embody received a 510(k) clearance from the FDA in May 2022 for its Tapestry RC implant for shoulder rotator cuff injuries. Designed for minimally invasive arthroscopic procedures to cover partial and full tears, the bioabsorbable patch and anchors affix the implant to the patient’s tendons and bone to help stimulate healing over time, while leaving behind collagen-based connective tissue.

Embody has also been developing its Tapestry implants for foot and ankle tendon procedures, ACL tears and gluteus medius repairs in the hip joints.

For its efforts, Embody raised $10.4 million in venture capital funding during a September 2022 series C, led by Genesis Innovation Group’s cultivate(MD) Capital Funds LP. Before that, it collected $20.5 million in an August 2021 funding round. The company was founded in 2014 with more than $23 million in funding from the U.S. Department of Defense.