Zimmer Biomet Acquires Cayenne Medical, Boosts Sports Medicine Segment
Zimmer Biomet has bolstered its sports medicine device segment with the acquisition of Cayenne Medical for an undisclosed amount. Senior executives from both companies commented that the deal will accelerate Cayenne’s portfolio of minimally invasive soft tissue and reconstruction solutions for extremities.
Cayenne Medical is an Arizona-based startup, launched in 2005, whose stated focus is saving procedure time and reducing cost-of-care while improving patient outcomes. Following a $15 million series C financing round in 2008, the company has launched a variety of platform technologies, including CrossFix, a less invasive and all-inside system for repairing meniscal tears; AperFix, an arthroscopic reconstruction method to address traumatic injuries to the posterior cruciate ligament (PCL); and SureLock, an all-suture anchor system for shoulder and extremity surgery.
Last month, Cayenne launched the latest addition to its portfolio of platform technology, a biological solution designed to address rotator cuff repair failures. BioWick was cleared by the FDA in July 2015.
According to David Nolan, group president of Zimmer Biomet’s sports medicine, extremities and trauma businesses, Zimmer Biomet’s broader sales capabilities will accelerate Cayenne’s portfolio, which will provide a significant growth opportunity for Zimmer Biomet.
“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 Nolan in a press release.
David Springer, president and CEO of Cayenne, commented that joining with Zimmer Biomet will spur future growth, as well as the innovation of minimally invasive and cost-effective solutions for sports medicine surgery centers.
“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,” said Springer.
Since Zimmer and Biomet completed their merger in June 2015, their combined product sales have increased by 28.3 percent, which CEO David Dvorak attributed to the merger and “sequential improvement” from the companies’ joint reconstructive and sports medicine, extremities, and trauma segments in the U.S.
When the merger was announced in 2014, Dvorak noted the company’s strategy moving forward would include a focus on cost-effective technology.
“We believe that current demographic and macroeconomic trends affecting the healthcare industry will reward companies that successfully partner with other key stakeholders to improve patient care in a cost-effective manner,” said Dvorak, who later added that the industry could expect a “powerful pipeline” of products from Zimmer Biomet in 2016.
So far this year, Zimmer Biomet has acquired integrated skeletal implant prosthesis maker Ortho Transmission and announced the launch of United 3D, a 3D-printed foot and ankle implant.