Wright Medical Group N.V. Completes Acquisition of Cartiva, Inc.
October 10 2018 - 6:00AM
Wright Medical Group N.V. (NASDAQ:WMGI) today announced it has
completed its acquisition of Cartiva, Inc. (Cartiva), an
orthopaedic medical device company focused on treatment of
osteoarthritis of the great toe. The transaction adds a
differentiated PMA-approved technology for a high-volume foot and
ankle procedure and further accelerates growth opportunities in
Wright’s global Extremities business.
Wright previously announced on August 27, 2018 that it had
entered into a definitive agreement to acquire 100% of Cartiva’s
outstanding equity on a fully diluted basis for a total price of
$435 million in cash.
Wright will provide updated full-year 2018 guidance, including
the impact of the Cartiva acquisition, on its third quarter 2018
earnings call, which is scheduled for November 7, 2018.
Robert Palmisano, president and chief executive officer,
commented, “We are delighted to welcome Cartiva as a member of the
Wright family. With approximately 120,000 procedures for
great toe arthritis performed each year in the U.S., we believe
that this technology provides a proven alternative to fusion that
reduces joint pain without sacrificing the foot’s natural movement
and retains mobility and range of motion.”
Cartiva’s Synthetic Cartilage Implant (SCI) is indicated for
treating arthritis at the base of the great toe and received U.S.
Premarket Approval in July 2016. The SCI is composed of a
biocompatible, durable, low-friction organic polymer that functions
similarly to natural cartilage and can be implanted in about 35
minutes. Unlike fusion, Cartiva reduces joint pain without
sacrificing the foot’s natural movement and retains mobility and
range of motion. Due to a less restrictive rehabilitation
protocol, Cartiva patients typically return to function and
activities of daily living faster than patients who undergo a
fusion procedure. Additional regulatory approvals have been
obtained in Canada, EU, Brazil, Chile and Australia.
About Wright Medical Group N.V.
Wright Medical Group N.V. is a global medical device company
focused on extremities and biologics products. The company is
committed to delivering innovative, value-added solutions improving
the quality of life for patients worldwide. Wright is a
recognized leader of surgical solutions for the upper extremities
(shoulder, elbow, wrist and hand), lower extremities (foot and
ankle) and biologics markets, three of the fastest growing segments
in orthopaedics.
™ and ® denote trademarks and registered trademarks of Wright
Medical Group N.V. or its affiliates, registered as indicated in
the United States, and in other countries. All other
trademarks and trade names referred to in this release are the
property of their respective owners.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release includes forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally can be identified by the use
of words such as “anticipate,” “expect,” “could,” “may,” “will,”
“believe,” “estimate,” “continue,” “guidance,” “future,” other
words of similar meaning and the use of future dates. Forward
looking statements in this release include, but are not limited to,
statements about the anticipated clinical and financial performance
of Cartiva’s products. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
Each forward-looking statement contained in this release is subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by such
statement. Applicable risks and uncertainties include, among
others, failure to achieve the anticipated financial benefits of
the Cartiva acquisition, unanticipated clinical performance issues
with Cartiva products or the introduction of competitive products
with clinical performance attributes that are superior to Cartiva
products, failure to achieve wide market acceptance of the Cartiva
products due to clinical, regulatory, cost, reimbursement or other
issues, failure to achieve anticipated financial results for 2018,
the failure of Wright’s 2017 U.S. sales force additions to achieve
expected results, delay or failure to drive U.S. lower extremities
or biologics sales to anticipated levels; continued supply
constraints; failure to integrate the legacy Wright and Tornier
businesses and realize net sales synergies and cost savings from
the merger with Tornier or delay in realization thereof; operating
costs and business disruption as a result of that merger, including
adverse effects on employee retention and sales force productivity
and on business relationships with third parties; integration
costs; actual or contingent liabilities; adverse effects of
diverting resources and attention to providing transition services
to the purchaser of the large joints business; the adequacy of
Wright’s capital resources and need for additional financing; the
timing of regulatory approvals and introduction of new products;
physician acceptance, endorsement, and use of new products; failure
to achieve the anticipated commercial sales of our AUGMENT® Bone
Graft and other new products; the effect of regulatory actions,
changes in and adoption of reimbursement rates; product liability
claims and product recalls; pending and threatened litigation;
risks associated with the metal-on-metal master settlement
agreement and the settlement agreement with the three settling
insurers; risks associated with the subsequent metal-on-metal
settlement agreements and ability to obtain the additional new
insurance proceeds contingent thereon; risks associated with
international operations and expansion; fluctuations in foreign
currency exchange rates; other business effects, including the
effects of industry, economic or political conditions outside of
the company’s control; reliance on independent distributors and
sales agencies; competitor activities; changes in tax and other
legislation; and the risks identified under the heading “Risk
Factors” in Wright’s Annual Report on Form 10-K for the year ended
December 31, 2017 filed by Wright with the SEC on February 28, 2018
and subsequent SEC filings by Wright, including without limitation
its Quarterly Reports on Form 10-Q for the quarters ended April 1,
2018 and July 1, 2018. Investors should not place considerable
reliance on the forward-looking statements contained in this
release. Investors are encouraged to read Wright’s filings with the
SEC, available at www.sec.gov, for a discussion of these and other
risks and uncertainties. The forward-looking statements in this
release speak only as of the date of this release, and Wright
undertakes no obligation to update or revise any of these
statements. Wright’s business is subject to substantial risks and
uncertainties, including those referenced above. Investors,
potential investors, and others should give careful consideration
to these risks and uncertainties.
Investors & Media:
Julie D.
Dewey
Sr. Vice President, Chief Communications
OfficerWright Medical Group N.V.(901)
290-5817julie.dewey@wright.com
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