Healthcare sector comment: Continued trade and investor interest in Orthopaedics market

The global orthopaedic devices market is expected to reach $53bn by 20241, and there are no signs of this growth stopping in the near future, with a CAGR of 5.5% forecasted2.

There are many contributing factors to this market growth, including the ageing geriatric population, poor diets and growing prevalence of conditions such as osteoporosis, arthritis and other orthopaedic disorders. The development of new technologies now means that these types of disorders can be operated on. This demand is especially evident in the UK, which is said to account for 15% of Europe’s revenue share in orthopaedic device usage.

One area in the orthopaedic markets showing strong growth is in robot assisted surgical interventions, and is expected to boost the market by enabling complex surgeries to take place. 3D printing means orthopaedic implants can be manufactured with ease.

The global leader in this market is the US, with a value of approximately $20bn1 – just under 40% of the market total. The US market is expected to witness considerable growth over the coming years with key players such as Zimmer Biomet, Stryker, DJO Global and DePuy Synthes currently dominating.

Due to this continuing growth, we can expect to see potential investors become increasingly attracted to the orthopaedic devices market and therefore a strong level of M&A activity short and long-term.

1 Global Market Insights: Orthopedic Devices Market Size to hit $53bn by 2024: Global Market Insights, Inc.
2 Orthopedic Devices Market – Segmented by Application and Geography – Growth, Trends, and Forecast (2018 – 2023)

 

Below is selection of deals we have observed within the orthopaedic devices market over the past 12 months:

MedPlast Inc the US-based provider of finished medical devices has acquired Advanced Surgical and Orthopedics Product Lines the US-based provider of orthopaedic medical devices

AK medical holdings Ltd the China-based producer of orthopaedic joint implants has acquired JRI Orthopaedics Ltd, the UK-based manufacturer of orthopaedic implants for hips and shoulders for € 19.2m

Precision Engineering Products LLC the US-based manufacturer of engineered metal and plastic components has acquired Paragon Medical Inc, the US-based manufacturer of healthcare supplies and orthopaedic implants such as spinal applications for €305.6m

Apposite Capital LLP the UK-based private equity firm has acquired OrthoD Group Limited, the UK-based manufacturer of joint implants for the knee and hip for €22.7m

Double medical Technology Inc the China-based producer of spine and joint implants has acquired Boyining (Xiamen) Medical Devices Co Ltd, the China-based producer of orthopaedic spine and trauma products for €5.4m

Smith & Nephew plc the UK-based medical devices company has acquired Rotation Medical Inc, the US-based developer of rotator cuff implants for €106.5m

Dynatronics Corporation the US-based manufacturer of physical medicine products has acquired Bird and Cronin Inc, the US-based manufacturer of orthopaedic soft goods for €11.9m

Laboratorios Cinfa, S.A. the Spain-based manufacturer of drugs and orthopaedic products has acquired ORLIMAN S.L., the Spain-based manufacturer of orthopaedic products for the knee, ankle and elbow

LifeHealthcare Group Ltd the Australia-based medical devices supplier has acquired Oceania Orthopaedics Pty Ltd, the Australia-based provider of orthopaedic products for the knee and hip for €6.5m

Marle International SAS the France-based manufacturer of orthopaedic implants has acquired SMB Holding AG, the Switzerland-based manufacturer of orthopaedic implants

Medartis AG the Switzerland-based manufacturer of implants for the fixation of bone fractures has acquired Mimedis AG, the Switzerland-based manufacturer of orthopaedic implants for the jaw

Stryker Corporation the US-based medical technology company has acquired Mita LLC the US-based developer of orthopaedic devices for the hip

Permira Advisers LLP the UK-based private equity firm has acquired Corin Group Plc the UK-based manufacturer of orthopaedic products for the hip knee and spine

 

Below are a selection of recent healthcare sector deals captured in April and May.

Medical Equipment & Supplies

McKesson Corporation the US-based provider of pharmaceutical and medical supplies has agreed to acquire Medical Specialities Distributors LLC, the US-based healthcare products distributor for €656.6m

Axcel Management A/S the Denmark-based private equity firm has acquired Orion Diagnostica Oy, the Finland-based manufacturer of diagnostics tests and test systems for €223.0m

Altaris Capital Partners LLC the US-based private equity firm has agreed to acquire Analogic Corporation, the US-based manufacturer of medical imaging systems for €880.3m

ArchiMed SAS the France-based private equity firm has acquired Soest Medical Group, the Netherlands-based producer of self-adhesives for the medical industry

Seed Co Ltd the Japan-based listed manufacturer of contact lenses and eye care products has acquired Contact Lens Precision Laboratories Ltd, the UK-based manufacturer of contact lenses

Apax Partners LLP the UK-based private equity firm has agreed to acquire Sutures India Private Limited, the India-based manufacturer of surgical sutures for €251.0m

Top Glove Corporation Bhd the Malaysia-based manufacturer of rubber gloves has completed the acquisition of Aspion Sdn Bhd the Malaysia-based medical and surgical gloves manufacturer for €278.9m

Zoetis Inc the US-based provider of veterinary vaccines has agreed to acquire Abaxis Inc the US-based manufacturer of portable blood analysis systems for €1.55bn

 

Health & Social Care

Delphi Behavioural Health Group LLC the US-based provider of addiction and mental health treatment programs has acquired Summit Behavioral Health Limited, the US-based provider of drug and alcohol addiction rehabilitation services

AniCura AB the Sweden-based animal hospital and clinics operator has acquired Molde Dyreklinikk AS, the Norway-based provider of veterinary services

AviaRent Capital Management sarl the Luxembourg-based real estate investment firm has acquired PHN Seniorenresidenz, the Germany-based senior nursing facility for € 21.6m

Care Management Group Limited the UK-based provider of support services has acquired Homes Caring for Autism Limited, the UK-based operator of residential care homes for individuals with autism for €13.7m

Radiant Life Care Private Limited the India-based operator of health care facilities has agreed to acquire Fortis Hospital Mulund, the India-based hospital

Totally Smiles Pty Ltd the Australia-based provider of dental services has acquired the business and assets Of 51 Dental Practices and Distinctive Dental Care Pty Ltd, based in Australia for €41.2m

Tenet Healthcare Corporation the US-based diversified healthcare services company has acquired United Surgical Partners International Inc, the US-based operator of surgical facilities for €520.4m

Clacton Dental Care Ltd the UK-based operator of dental care practises has acquired Oradi Ltd, the UK-based dental care services company

Nytida AB the Sweden-based provider of healthcare services for those with mental disabilities has acquired Curation Holding AB the Sweden-based provider of accommodation for those with autism for €28.7m

 

Pharmaceuticals & Biotechnology

Blackmores Limited the Australia-based developer of natural health products for humans and animals has agreed to acquire Catalent Australia Holding Pty Limited, the Australia-based subsidiary of Catalent Inc for €26.9m

Procter and Gamble Company the US-based provider of consumer products has agreed to acquire Merck KGaA (Consumer health business), based in Germany for €3.4bn

Fargon NV the Belgium-based pharmaceutical compounding services provider has acquired Humco Holding Group Inc, the US-based provider of OTC medicines for €57.1m

Takeda Pharmaceutical Company the Japan-based pharmaceutical research and development company has agreed to acquire Shire Plc, the Ireland-based biotechnology company for €51.4bn

Zhejiang Conba Pharmaceutical Co Ltd the China-based pharmaceutical company has acquired Jiangxi Herbi-Sky Co Ltd, the China-based manufacturer of Chinese medicinal products for €38.9m

Alexion Pharmaceuticals Inc the US-based biopharmaceuticals company has agreed to acquire Wilson Therapeutics AB, the Sweden-based biopharmaceuticals company for €636.7m

Amneal Pharmaceuticals Inc the US-based speciality pharmaceutical company has acquired Gemini Laboratories LLC the US-based developer of pharmaceutical products for €100.4m

Eli Lilly and Company the US-based manufacturer of pharmaceutical products has agreed to acquire AurKa Pharma Inc the Canada-based developer of medication for cancers for €480.4m