Stryker Corp. Acquires OtisMed Corp., Other Assets for $100 Million+

Stryker Corp. has acquired an orthopedic technology firm and bone-cutting products from two other companies, according to the Kalamazoo, Mich.-based company.

Stryker has agreed to pay up to $103 million for the combined acquisitions, according to a news release, with $36 million of the purchase price coming in the form of milestone and royalty payments that are contingent upon the achievement of certain goals.

Orthopedic technology firm OtisMed Corporation will operate as part of Stryker’s orthopedics division and remain in Alameda, Calif. It will focus on customizable instrumentation for Stryker implants and Stryker’s Triathlon Knee System.

Founded in 2005, OtisMed has developed and commercialized surgical solutions that are customized to each patient. Its debut product, the OtisKnee, enables surgeons to match the size and placement of the implant to patients’ unique and normal (non-diseased) knee anatomy. Surgeons are able to match the implant so precisely through company’s ShapeMatch technology. Using 3-D software, the ShapeMatch technique optimizes the size and placement of the knee implant before surgery.

In addition to the purchase of OtisMed, Stryker has agreed to acquire assets from Mutoh Co. Ltd., a Japanese provider of equipment, products, instruments and services to the medical and scientific communities; and Synergetics USA Inc. in O’Fallon, Mo., a supplier of precision microsurgery instrumentation, used to produce Sonopet Ultrasonic Aspirator control consoles, hand pieces and accessories. These products will be incorporated into Stryker’s instruments division, which is located in Kalamazoo.

“The Mutoh Sonopet ultrasonic aspirator equipment has proven to be a remarkable advance in precise intraoperative fragmentation and emulsification of soft tissue and bone, which in conjunction with Synergetics’ ultrasonic instrument tips, have expanded the surgeon’s resources in performing neurocranial and neurospinal surgery,” said David M.Hable, Synergetics president and CEO. “With Stryker marketing these products in the future, customers can look forward to the excellent customer support and service for which Stryker is well known.”

The closing of these transactions is expected to occur before the start of the new year.