Depuy's Strategy for a New Orthopedics Market
As managed care makes its presence felt, the question orthopedic companies face isn't whether to deal with the new players or not, but how to navigate a market sending decidedly mixed signals.
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In the US acceptance of dynamic stabilization devices (DYNs) has been strong owing to the compelling advantages of DYNs over artificial discs, including that they can be implanted from a posterior route, do not violate the disc space and the procedure is reversible. Rather being an alternative to fusion, artificial discs will likely compete with DYNs.
A conservative industry, orthopedics rarely sees a lot of acquisition activity. But a number of deals among spine companies recently underscores how hot the spine market is right now and the importance of acquisition as a strategy for realizing its potential.
Thermo Fisher Scientific has agreed to buy Mesa Biotech for $450m in cash and Hillrom will acquire Bardy Diagnostics for $375m in cash. Both deals will add complementary digital health solutions, which may be a continued trend in 2021.