Zimmer Biomet expands sports medicine portfolio with $275 million acquisition announcement - MedCity News

The harsh economic headwinds don’t seem to be having a major impact on the orthopedic giant Zimmer Biomet — the Indiana-based company announced on Thursday its plan to make a multimillion-dollar acquisition.

Zimmer Biomet has entered into a definitive acquisition agreement I embody, a privately held medical device company based in Virginia. Embody manufactures implants designed to treat soft tissue injuries often suffered by athletes.

Upon closing, Zimmer Biomet will pay $155 million. The company will also pay up to an additional $120 million depending on regulatory and commercial milestones reached over the next three years.

Embody was founded in 2014 with more than $23 million in funding from the Department of Defense. Since then, it has launched collagen-based products focused on repairing tendons, ligaments and torn rotator cuffs.

In the planned acquisition, Zimmer Biomet will receive Embody’s complete product portfolio for orthopedic soft tissue injuries. Chief among them are Embody’s implants for tendon healing and rotator cuff repairboth received 510(k) clearance from the FDA.

Zimmer Biomet is pursuing this deal to expand its sports medicine portfolio and enter the fast-growing rotator cuff submarket, said Christophe Gosson, the company’s global vice president and general manager for extremities and sports medicine.

“Embody’s solutions complement our comprehensive portfolio of biologics and sports medicine with collagen-based implants to support healing through soft tissue regeneration,” he said.

In Goson’s view, Embody stands out from its competitors because it addresses a historic challenge when it comes to creating bioaugmentation for injury repair: balancing bioaugmentation and structural performance.

Embodiment triumphs over past limitations by using additive manufacturing platforms such as electrospinning and microfluidic extrusion. This optimizes both structure and chemistry, creating an ideal microenvironment for treatment, Gosson said.

“As a result of both the unique biology and manufacturing process, no negative inflammatory reactions to the new material have been reported to date, which is a competitive advantage compared to other commercially available options,” he said.

But why make this acquisition now, amid the difficult economic climate? Goson said now is the right time because Zimmer Biomet sees sports medicine as a definite growth area and is serious about expanding its portfolio. The deal, which is expected to close in February, will allow the company not only to expand its sports medicine portfolio, but also to hire a dedicated and dedicated sales team, he said.

Gosson also said this deal fits well with Zimmer Biomet’s ongoing plan to transform the company went outside its dental and spine divisions into a separate named company ZimVie last year.

Photo: designer491, Getty Images

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