Virginia medical device manufacturer K2M is to be acquired by Michigan headquartered FORTUNE 500 medical technology firm Stryker (NYSE:SYK). Both companies apply 3D printing technology to the production of spinal implants. In the terms of the acquisition, K2M is to become a wholly owned subsidiary of Stryker at the aquisition price of $27.50 per share, generating a total value in the region of $1.4 billion.
Kevin A. Lobo, Chairman and CEO at Stryker, commented:
“This acquisition underscores our commitment to the spinal market, which is the largest segment of orthopaedics with significant unmet needs,”
“We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets.”
3D printed spinal implants
Founded in 1941, Stryker distributes a broad catalog of products from implants used in joint replacement to surgical navigation systems. 3D printing technology at the company is marketed in the Tritanium (titanium alloy) spinal implant range which has achieved FDA clearance a number of times for various applications. Stryker’s 3D printed Tritanium implants are porous, a feature which helps promote the in-growth of cell tissues.
K2M was founded in 2004. The company’s portfolio includes minimally invasive implants, such as the adjustable MOJAVE 3D printed spinal support implant, biologics, and treatments for complex spine injuries, such as the CAPRI cage system made which recently passed CE qualification after a successful operation in Denmark.
A $10 billion opportunity
Stryker’s acquisition of K2M is expected to close by the end of Q4 2018, subject to customary closing conditions, and stockholders/regulatory approval. The transaction has so far been approved by both companies’ Board of Directors.
According to Eric D. Major, Chairman, CEO, and President of K2M, “Joining Stryker will be a very exciting next chapter for our global team and surgeon customers around the world,”
“Stryker’s established leadership in the orthopedic and neurosurgical market, combined with K2M’s culture of innovation and leadership in complex spine and minimally invasive solutions, represent a powerful opportunity for Stryker to strengthen its leadership in the $10 billion global spine market.”
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Featured image shows design for Stryker’s 3D printed Titanium lumbar cages. Image via Stryker