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The Volatile Spine Device Market: Mergers, IPOs & International Growth

Written by  Laura Dyrda | Tuesday, 24 June 2014 10:46

The spine and orthopedic device markets have seen almost everything during the first six months of 2014: huge company merger/acquisition deals, initial public offerings and announcements that even some of the smaller players in the markets are going global. And by many accounts, the second half of the year will be no different.

Frost & Sullivan’s research estimates the 2014 global orthopedic implant market will reach $34.9 billion at a 2.8 percent compound annual growth rate. A few of the biggest company highlights since January include:

•    Zimmer and Biomet agreed to merge in a deal worth $13.4 billion
•    Smith & Nephew completed a $1.5 billion acquisition of ArthroCare
•    K2M filed an initial public offering that raised approximately $120 million
•    Amedica filed an initial public offering of 3.5 million shares at $5.75 per share
•    LDR initiated a follow-on public offering in April to raise $25 million after going public in September 2013
•    Life Spine entered the Chinese market
•    Medtronic acquired Covidien for $42.9 billion

“We are in the first wave of big acquisitions,” says Paul Teitelbaum, managing director and medical device/healthcare IT M&A expert at Mesirow Financial’s Investment Banking Group. “I think we’ll see one or two more of this type of transaction, followed by a wave of smaller acquisitions as companies look for innovative growth areas. For the next three years, you are going to see an increased number of small- to mid-sized acquisitions in niche areas.”

 

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Josh Sandberg

Josh Sandberg is the President of Ortho Sales Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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