DePuy Synthes Acquires Medical Enterprises Distribution LLC’s Orthopedic Assets

DePuy Synthes, a part of the Johnson & Johnson Medical Devices Companies, announced recently that it has signed a definitive agreement to acquire the assets of Medical Enterprises Distribution, LLC, which includes the automated ME1000™ Surgical Impactor tool used in hip replacement surgery.  The two companies had previously formed an exclusive agreement to co-market the hip application of the ME1000™.  The financial terms of the acquisition are not being disclosed.  The transaction is expected to close in the second quarter of 2018.

According to Medical  Enterprises, the ME1000™ delivers constant, stable energy that is designed to automate bone preparation, implant assembly and positioning in total hip arthroplasty (THA).  DePuy Synthes said that the company plans to develop and broaden the surgical impactor technology for a range of orthopaedic surgery procedures.

“The acquisition of assets of Medical Enterprises Distribution is a key example of going beyond the implant to provide complete solutions to achieve better outcomes.” – Ciro Roemer, Company Group Chairman of DePuy Synthes

The hip replacement global market was $6.5 billion in 2015 and is predicted to reach $9.1 billion by 2025.  The global market for all joint replacements is expected to reach $30 billion by 2025.  Other companies in the joint replacement markets include Zimmer Biomet, Smith & Nephew, and Stryker.

In the recent press release, DePuy Synthes also announced an exclusive marketing agreement with JointPoint Inc. to co-market a hip navigation system for  analysis of implant selection during THA.  Earlier this year, DePuy Synthes announced the acquisition of Orthotaxy, a privately-held developer of software-enabled surgery for total and partial knee replacement.  In discussing the Orthotaxy acquisition, Ciro Roemer, Company Group Chairman of DePuy Synthes, said “Our goal is to bring to market a robotic-assisted surgery technology that is an integral part of a comprehensive orthopedics platform, delivering value to patients, physicians and healthcare providers across the episode of care.”  Other companies in the joint replacement market are likely seeking to create comprehensive orthopedic platforms as well.

Written by: Michael Burns, PhD.