OrthoPediatrics’ ACL reconstruction system. Image courtesy of Akron Children’s Hospital.
Warsaw, Ind.-based OrthoPediatrics Corp. introduced two major new products at the annual meeting of the Pediatric Orthopedic Society of North America, held April 30-May 3 in Hollywood, Calif. The Response spine system and the OrthoPediatrics anterior cruciate ligament reconstruction system represent the company’s expansion from the pediatric trauma and deformity correction market into the scoliosis and sports medicine markets.
In order to support these product introductions, the anticipated increase in employment in Warsaw, and other capital-intensive initiatives, OrthoPediatrics also has negotiated a $37 million equity investment by its largest shareholder and financial partner, Squadron Capital LLC. This new investment will be used, in part, to support OrthoPediatrics’ sales growth in 28 countries around the world. According to the company, the investment also will help to reduce and restructure the debt on OrthoPediatrics’ balance sheet. The company anticipates that this will be the last private capital raise needed.
“In an environment where major orthopedic companies are consolidating and cutting head count, OrthoPediatrics is expanding employment and investing in important new surgical systems,” said President and CEO Mark C. Throdahl. “We are successfully implementing our strategy of building an enduring orthopedic company and surrounding pediatric orthopedists with all the surgical systems they need. We are committed to improving the lives of children with orthopedic conditions through the development of new products and supporting pediatric surgical associations in the United States and abroad.”
OrthoPediatrics is the only orthopedic company focused exclusively on orthopedic devices for children, which is an underserved market.