Healthcare Industry News: Wright Medical Group
News Release - October 22, 2007
Wright Medical Acquires Innovative BIO-ARCH(TM) Foot and Ankle Implant from MetasurgAddition of BIO-ARCH(TM) Subtalar Implant Creates Industry-leading Portfolio for Surgical Flatfoot Deformity Correction
ARLINGTON, Tenn.--(HSMN NewsFeed)--Wright Medical Group, Inc. (NASDAQ: WMGI ), announced today that it has acquired certain assets of Metasurg, a Houston, Texas-based company focused on development and marketing of surgical fixation and implant devices for foot and ankle surgery. The purchase consists of an initial cash payment of $2.5 million and potential additional cash payments based upon future financial performance of the acquired assets.
Assets acquired are specific to Metasurg's BIO-ARCH™ subtalar implant, which is used in surgical treatment of flatfoot deformity. The BIO-ARCH™ implant is innovatively designed to provide improved patient tolerance versus conventional implant designs and can be inserted in a fast, accurate and minimally invasive manner. Wright will begin offering the BIO-ARCH™ products through its U.S. sales force effective immediately with expansion into certain international markets expected during 2008.
Peter Redko, DPM, a Petaluma, California-based foot and ankle surgeon, commented, “The flat foot is a progressive deformity that, left untreated, can lead to debilitating pain in addition to formation of bunions, hammertoes and plantar fascitis. The BIO-ARCH™ implant is designed to allow for a minimally invasive procedure that corrects the flat foot deformity. In my experience, the advanced anatomic design of the BIO-ARCH™ implant allows for the greatest ease of insertion, excellent stability, early return to ambulation, and is well tolerated by patients requiring little to no post-operative analgesia.”
“Wright’s vision is to become the ‘one-stop-shop’ for foot and ankle surgeons’ surgical needs, and providing comprehensive suites of products around specific pathologies is central to achieving this goal,” stated John T. Treace, Vice President of Marketing for Wright’s biologic and extremity products. “The BIO-ARCH™ implant is a key addition to Wright’s already robust surgical suite for foot and ankle procedures, which includes CANCELLO-PURE™ Bone Wedges, A.M. Surgical's Endoscopic Soft Tissue Release System, and DARCO® Locked Reconstructive Plates. These products can be used in concert with each other during foot and ankle procedures and our intention is to enhance procedure reproducibility, reduce procedure time and ultimately improve patient outcomes.”
This acquisition is expected to be approximately one cent dilutive to Wright’s adjusted earnings, which exclude acquisition-related costs such as integration charges and non-cash inventory step-up expenses, during the fourth quarter of 2007 and neutral or accretive to Wright’s earnings thereafter. More detailed guidance regarding the financial aspects of the transaction and its expected impact on Wright’s future financial results will be provided in connection with the Company’s announcement of its third quarter 2007 financial results on November 1, 2007.
About Wright Medical Group
Wright Medical Group, Inc. is a global orthopaedic medical device company specializing in the design, manufacture and marketing of reconstructive joint devices and biologics. The Company has been in business for more than 50 years and markets its products in over 60 countries worldwide.
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements made in this press release, other than statements of historical fact, are forward-looking statements. Forward-looking statements reflect management’s current knowledge, assumptions, beliefs, estimates, and expectations and express management’s current views of future performance, results, and trends. The Company wishes to caution readers that actual results might differ materially from those described in the forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, including the factors discussed in the Company’s filings with the Securities and Exchange Commission (including the Company’s annual report on Form 10-K for the year ended December 31, 2006 under the heading, “Factors Affecting Future Operating Results,” and in its quarterly reports), which could cause the Company’s actual results to materially differ from those described in the forward-looking statements. Although the Company believes that the forward-looking statements are accurate, there can be no assurance that any forward-looking statement will prove to be accurate. A forward-looking statement should not be regarded as a representation by the Company that the results described therein will be achieved. The Company wishes to caution readers not to place undue reliance on any forward-looking statement. The forward-looking statements are made as of the date of this press release. The Company assumes no obligation to update any forward-looking statement after this date.
Source: Wright Medical
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