Wright Medical announced plans to acquire Cartiva, which holds a PMA on a cartilage-like polymer approved for use in procedures treating great toe osteoarthritis. Wright Medical will pay $435 million in cash for the company, with the deal to be financed by an equity offering and expected to close in 4Q:18.
Cartiva completed a rare PMA in orthopedics, evaluating its Synthetic Polymer Implant (comprised of 40% polyvinyl alcohol [PVA] and saline [0.9%]) in a multi-center trial that randomized 197 subjects 2:1 to the SCI or standard-of-care fusion for the treatment of great toe OA. The study showed equivalent pain relief and function between SCI and fusion, and FDA approved the device in July 2016. Cartiva notes that the procedure is typically performed in the outpatient setting, is faster than fusion and has a less restrictive rehab program than fusion, allowing patients to return to their usual activities more quickly. When announcing the transaction, Wright Medical noted that the device will complement their existing extremities business, addressing the same call point and procedures. The company expects SCI to contribute $47 million to 2019 revenues.
Cartiva was founded in 2011 and has raised $22.8 million since its inception, according to CapitalIQ, with NEA and Windham Venture Partners among their investors.