International orthopedic devices company Wright Medical (WMGI) has inked a supply and distribution pact with surgical products maker ArthroCare Corporation (ARTC). Under the agreement, ArthroCare will provide Wright Medical with products for soft tissue fixation of the foot and ankle based on its Opus knotless suturing technology.
The deal covers a range of tissue fixation devices, based on the market-leading Opus technology, which Wright Medical will exclusively distribute to foot and ankle surgeons globally. Wright Medical plans to market these products during second-half 2011 through its dedicated foot and ankle sales team.
Austin-based ArthroCare develops and markets minimally-invasive, state-of-the-art surgical products, addressing a multi-billion dollar market opportunity across several medical specialties. Its proprietary Opus technology enables surgeons to effectively fix tendons and ligaments to bony structures without the need to tie knots. The company’s fixation technology is widely used in the rotator cuff repair market, having been used in more than 100,000 procedures globally since 2001.
Wright Medical is a global orthopedic devices company specializing in the development and marketing of reconstructive joint devices and bio-orthopedic materials. It is a leader in the U.S. and German markets for foot and ankle surgical products.
Wright Medical’s market-leading foot and ankle product line includes the CHARLOTTE reconstructive implants, DARCO locked plating systems, the INBONE total ankle replacement system and the latest INBONE II total ankle replacement system.
We feel future revenue growth will be supported by new product launches. Moreover, new deals in extremities, Wright Medical’s fastest growing segment, are expected to bolster growth in this business.
Our views are moderated by intense competition from larger players, pricing pressure, and a still soft U.S. orthopedic reconstruction market. We are currently Neutral on the stock.
ARTHROCARE CORP (ARTC): Free Stock Analysis Report
WRIGHT MEDICAL (WMGI): Free Stock Analysis Report
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