Sam Brusco, Associate Editor04.05.22
Pediatric orthopedic company OrthoPediatrics has acquired MD Orthopaedics to the tune of $19.6 million—$8.6 million was paid in upfront cash, $8.9 million in company stock, and up to $2.5 million in restricted stock after three years.
The transaction includes MD Ortho’s Mitchell Ponseti ankle-foot orthosis (AFO) system to treat clubfoot. MD Orthopaedics created a custom fit bracing system supporting the gold-standard Ponseti technique for clubfoot. The company will become a specialty bracing platform within OrthoPediatrics’ trauma and deformity business. OrthoPediatrics plans to leverage the clubfoot solution to develop several new products to address specialty bracing in pediatric orthopedics.
An estimated 80% of pediatric care involves non-surgical treatment, so buying MD Ortho expands OrthoPediatrics’ addressable market by an estimated $600 million according to the company.
“We believe MD Orthopaedics will be a springboard for our expansion into pediatric orthopedic non-surgical treatments for kids and further supports our mission of helping children living with orthopedic conditions,” OrthoPediatrics CEO David Bailey told the press. “The addition of non-operative specialty bracing systems advances our growth strategy of providing a broad product portfolio uniquely designed to treat children while surrounding pediatric orthopedic surgeons with the most comprehensive product offering in the market.”
MD Ortho has 14 issued patents and seven being processed. The company operates in 90 countries worldwide.
The transaction includes MD Ortho’s Mitchell Ponseti ankle-foot orthosis (AFO) system to treat clubfoot. MD Orthopaedics created a custom fit bracing system supporting the gold-standard Ponseti technique for clubfoot. The company will become a specialty bracing platform within OrthoPediatrics’ trauma and deformity business. OrthoPediatrics plans to leverage the clubfoot solution to develop several new products to address specialty bracing in pediatric orthopedics.
An estimated 80% of pediatric care involves non-surgical treatment, so buying MD Ortho expands OrthoPediatrics’ addressable market by an estimated $600 million according to the company.
“We believe MD Orthopaedics will be a springboard for our expansion into pediatric orthopedic non-surgical treatments for kids and further supports our mission of helping children living with orthopedic conditions,” OrthoPediatrics CEO David Bailey told the press. “The addition of non-operative specialty bracing systems advances our growth strategy of providing a broad product portfolio uniquely designed to treat children while surrounding pediatric orthopedic surgeons with the most comprehensive product offering in the market.”
MD Ortho has 14 issued patents and seven being processed. The company operates in 90 countries worldwide.