Industry News

Creganna Acquires Tactx Medical Inc.

2010 is shaping up to be a year of new beginnings for Creganna. Not only does the Marlborough, Mass.-based company have a new vision and strategic focus, it also has a new partner and new name.

Industry experts said the acquisition will give the new company (aptly named Creganna-Tactx Medical) a stronger presence in the minimally invasive device market. Combined, the new firm will employ 800 people and maintain offices on three continents. In addition, it will offer a wide range of services that Creganna executives hope will help it become a one-stop shop strategic partner for customers.

“Creganna-Tactx Medical will combine Creganna’s expertise in metal shafts, injection molding and materials science and Tactx Medical’s expertise in extrusion, braiding/coiling and balloons to fully serve customers’ needs,” stated a nine-page manifesto that presents the vision for the new company and explains the benefits of the acquisition to stakeholders. “Creganna-Tactx Medical will be well positioned to compete for full-service contracts on a global basis from design through manufacture, to assembly and end-of-life product management.”

Creganna-Tactx Medical CEO Helen Ryan called Tactx Medical a true fit for the company and used a page of the manifesto to list the similarities shared by the two firms. Besides sharing a customer base and global focus, both companies have similar values and brand promise to its partners, Ryan noted.

“This move represents a key step in Creganna’s vision to build a leading global medical technology company. Tactx Medical, with its strong market reputation, is a true fit for Creganna,” Ryan said in a statement. “Medical device companies are increasingly looking to strategic partners to fulfill more of their supply chain requirements. With our global locations, combined technologies and range of services, Creganna-Tactx Medical is strategically positioned to meet these evolving needs.”

In addition to its corporate headquarters in Marlborough, Mass., Creg-anna has facilities in Minneapolis, Minn.; San Diego, Calif.; Galway, Ireland; and Mariehamn, Finland. Tactx Medical is based in Campbell, Calif., and has facilities in Plymouth, Minn.; and Singapore.

Together, the two companies booked 2009 revenue of $110 million. Both firms provide technology and services to assist in minimally invasive surgeries.

Private Equity Firm Acts as Broker for CTW-Tegra Deal

Riverside Partners LLC, a Boston, Mass.-based private equity firm, has acquired an orthopedic contract manufacturing company on behalf of its client, Tegra Medical.

Terms of the deal between Riverside and CTW Inc., a Hernando, Miss.-based firm, were not disclosed. A news release about the acquisition said that CTW will leverage Tegra’s “organizational infrastructure” to help the 34-year-old company further penetrate the orthopedic market.

“We are excited about our partnership with Tegra Medical, [which] can provide ongoing resources, including sales and marketing resources, to support future growth,” said Dale Cole Jr., CTW president. “We are excited about working with Riverside Partners because of their experience in growing leading healthcare businesses. River-side can provide additional capital and resources to help the company continue its growth.”

Riverside has a history of growing healthcare companies. In October 2007, the firm purchased three businesses to form Tegra Medical: New England Precision Grinding Company of Holl-iston, R.I.; Accu-Met Laser of Cranston, R.I.; and American Medical Instrum-ents of Dartmouth, Mass. Tegra manufactures wire and tublar components and is based in Franklin, Mass.

Philip Borden, a general partner at Riverside, said the acquisition of CTW and its affiliation with Tegra Medical will help the company better meet the needs of its current and future customers. “CTW's strong position in the spine and trauma specialties, its long-term customer relationships, and its manufacturing facility make it a perfect fit,” he said.

Tegra Medical’s CEO claimed the move will help his company continue to provide clients with “innovative products” as well as quality and service.

Spinal Device Allows K2M to Penetrate Japan

K2M Inc. has once again increased the size of its global footprint.

The Leesburg, Va.-based spinal device firm was recently given approval by Japan’s Pharmaceuticals and Medical Devices Agency to sell its MESA spinal screw system there. The top-loading, low-profile screw system features Zero-Torque technology (which applies no pressure to the spine when locking the screw) and a 60-degree range of motion, according to data on the company’s Web site. The system also has instruments that give surgeons more versatility when operating.

K2M executives hope the MESA system will help the company establish a strong presence in Japan and a prolific product pipeline.

“We believe MESA will act as the flagship product to help establish a firm footing in Japan and open the door to introducing additional K2M products,” said Shigeo Miyata, representative director of Surgical Spine Inc., K2M’s Japanese spine business partner.

The MESA system was first utilized in degenerative lumbar surgeries, but quickly evolved for use in more complex deformity surgeries to address the market need for advanced spinal technology. The product’s evolution in the market was a rapid one—within four months of its debut in September 2006, doctors had performed 500 surgeries using the MESA system.

Eric Major, K2M president and CEO, called MESA’s debut in Japan an important milestone for the company and its goal to expand the availability of its products. “Receipt of regulatory approval in Japan…will fuel our continued growth,” he said in a news release. “We are committed to expanding the availability of our products throughout the world and to becoming the global leader in providing solutions for complex spinal technologies.”

K2M has proven its commitment to product expansion with the opening of a sales and distribution office in the United Kingdom last fall and the market launches of its devices in Australia and Germany. The company entered the German medical market in November through a distribution arrangement with Smith & Nephew GMBH.

K2M’s expansion into the U.K. began in 2008 with the CE Mark clearance of its Range, MESA and Denali spinal systems, the Pyrenees cervical plate system, and the Aleutian interbody system.

Smith & Nephew Develops New Treatment for Soldiers

The orthopedic division of Smith & Nephew plc is working with the U.S. Department of Defense (DOD) to develop a new material to treat soldiers with battlefield injuries.

The development contract the company signed with the government calls for the creation of a fracture fixation system designed specifically to treat injuries sustained from improvised explosive devices (IEDs), or roadside bombs. Used with increasing frequency by terrorist organizations and insurgents in both Afghanistan and Iraq, IEDs can inflict serious injuries on unsuspecting victims. These wounds often can lead to other fractures and infections, multiple surgeries, long rehabilitation times and, in some cases, amputation, medical experts said.

Besides the complications that can arise with these injuries, IED-related wounds can be difficult to treat due to the significant loss of bone and soft tissue. Standard treatment methods include permanent metal support devices such as plates, rods and bone screws.

The treatment being developed by Smith & Nephew involves a “fracture putty” that would provide support to the injured limb early in the body’s natural healing process so victims can participate in physical therapy sooner. The putty would dissolve over time, leaving naturally healthy bone in its place. “Fracture putty represents the ultimate convergence of orthopedic material science and mechanics, and has the potential to revolutionize the way patients are treated,” said Mitchell Zakin, Ph.D., program manager for the Defense Advanced Research Projects Agency, the central research and development agency for the DOD.

“If all technical challenges are met, we believe this technology will provide superior outcomes for patients,” he continued.

Smith & Nephew, which is based in London, England, and has U.S. headquarters in Memphis, Tenn., was the only company chosen to work on the fracture putty.

Alphatec Spine Acquires French Implant Firm

Alphatec Holdings Inc. has purchased Scient’x Groupe SAS in an all-stock deal that reportedly creates the world’s third-largest independent spinal firm.

Neither Alphatec Holdings (parent company of Alphatec Spine Inc.) nor Scient’x Groupe assigned a value to the acquisition. However, a news release about the deal said that Alphatec shareholders will own 69 percent of the newly created company, and Scient’x Groupe shareholders will retain 31 percent of the stock. The acquisition is expected to close by March 31.

The presidents of both Alphatec Spine and Scient’x Group said the acquisition would increase the new company’s global presence in all major geographic areas as well as strengthen and expand its product portfolio. The move also enhances the new firm’s ability to educate, train and service its spinal surgeon customers.

“We believe that Scient’x is a perfect complementary strategic fit for Alphatec Spine,” stated Dirk Kuyper, Alphatec Spine president and CEO.

Headquartered in Carlsbad, Calif., Alphatec Spine designs, develops, manufactures and markets devices for the surgical treatment of spine disorders. Scient’x Groupe is based in Guyancourt, France, and develops spinal implants and instruments.

New Medtronic Devices Target Spine Stabilization

Medtronic Inc. has unveiled two new spine stabilization devices in an effort to boost its share of the global spinal market.

One of the products improves upon a system that has been used by doctors and hospitals for more than 22 years. The TSRH 3Dx Spinal System, released late last year, enhances the original TSRH

An osteogrip screw with a 3Dx connector. Photo courtesy of Medtronic.

System the company developed with a Texas children’s hospital in 1987. That system consisted of various rods, hooks, screws, cross connectors, staples, plates and connecting parts as well as implant components from other spinal products. All the parts can be rigidly locked into a variety of configurations to treat degenerative spinal conditions, deformities and injuries.

The TSRH 3Dx system features two screws designed to address multiple pathologies. The multi-planar adjusting screw option gives surgeons a variable angle posted screw for targeted, controlled maneuvers, according to Medtronic’s news release about the 3Dx device. In addition, an osteogrip screw enhances bone fixation by incorporating a dual-lead thread pattern that reduces toggle at the bone-screw interface. Besides the new screws, the 3Dx system also features chromaloy rods and can be implanted through minimally invasive procedures.

“The TSRH 3Dx Spinal System allows me to better match solutions to patient needs,” said Brett Scott, M.D.

The TSRH 3Dx system can be used to treat lower back injuries or degenerative conditions.

Medtronic’s other new device is designed to treat lower back injuries as well. The Sovereign Spinal System, an intervertebral body fusion device, is designed to stabilize the spine and promote bony fusion (the joining together of two bones), according to Medtronic. More than 200,000 lumbar fusion procedures are performed each year to relieve leg and lower back pain, a company news release claimed.

Discs in the lower back often lose height when they are diseased, compressing nerve roots and the spinal cord. That compression can trigger excruciating pain in the legs and lower back. To restore disc height, surgeons have traditionally used bone grafts held in place by metal plates anchored to the spine with bone screws.

The Sovereign system incorporates a lens-shaped device with three holes for the placement of titanium screws, which protrude through the device to stabilize the disc and keep the implant immobile. The system also features a cover plate that is designed to resist screw backout.

Made of polyetheretherketone, the Sovereign device is radiolucent on X-rays and can be used as a stand-alone device or in conjunction with supplemental fixation, according to the company.