Stryker Buys Orthopedic Oncology Firm Stanmore Implants For $52 Million
By Jof Enriquez,
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Stryker Corporation added to its string of acquisitions this year with the recent purchase of Stanmore Implants, a United Kingdom-based manufacturer of reconstructive orthopedic devices for oncology patients, for $52 million (£35.6 million) in cash.
Stanmore makes custom and off-the-shelf implants in limb salvage surgery for adults and juveniles suffering from cancer. For adults, its portfolio includes modular implant solutions for the femur (thigh), tibia (leg), knee, and humerus (arm), and oncology implants for the upper and lower limbs, and the pelvis. For juveniles, Stanmore makes minimally-invasive prostheses that can be extended and adjusted until the patient reaches full skeletal maturity, as well as a non-invasive, extendible implant that can be lengthened periodically by an external drive unit.
"The acquisition of Stanmore Implants provides Stryker with differentiated technologies designed to provide the most effective solutions for orthopedic oncology surgeons. This addition underscores Stryker's commitment to our core joint replacement business and expands our presence in the global orthopedic oncology market," said Floyd, group president of Stryker Orthopedics, in a press release.
Stryker already makes a modular replacement system for the hip, femur, knee, and tibia affected by osteosarcoma, the most common type of bone cancer. It also manufactures surgical instruments and bone cement associated with these types of surgeries. The acquisition of Stanmore strengthens Stryker's foothold in this orthopedic niche segment.
"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 Michael Mainelli, CEO, Stanmore Implants.
The purchase of Stanmore Implants is the first deal made by Stryker since its CEO Kevin Lobo remarked recently that he will not hesitate "to pull the trigger on new deals".
"Keep in mind that the vast majority of the deals we do are small tuck-in deals," Lobo told analysts, according to a transcript of the call. "That will continue to be the case for Stryker. That is where we drive the most value and we find great technologies that we can give to our fabulous sales forces to drive."
Stryker bought Florida-based medical device startup SafeWire's minimally-invasive surgical portfolio in mid-April, and Synergetics' neurology portfolio in February. During the same month, it also executed larger, billion-dollar deals to acquire infection prevention supplier Sage Products and emergency medical services (EMS) equipment manufacturer Physio-Control.