Globus Medical
(NYSE:GMED) has acquired most of the assets of privately held orthopedics manufacturer StelKast for $24.1 million.
The purchase price could increase by $4.3 million if certain product and sales milestones are met, including a robot-assisted system for joint reconstruction expected to launch in late 2020.
McMurray, Penn.-based StelKast designs, manufactures and distributes implants and instruments for knee and hip replacement. The acquisition could help Globus (Audubon, Penn.) expand into the total joint and arthroplasty markets, according to Globus.
“Globus Medical’s proven product development engine and history of innovation, when combined with our computer-assisted technologies in imaging, navigation and robotics, have the potential to improve clinical care for joint arthroplasty patients and create value for shareholders,” David Paul, executive chairman.Paul said in a news release.
In December, Globus launched its ExcelsiusGPS robot-assisted surgery platform in the global market. The company also acquired Nemaris and its Surgimap planning software last year, and purchased Swiss robotic developer KB Medical in 2017.
The StelKast acquisition signals Globus’ efforts to leverage its experience in robot-assisted spinal surgery into other areas, Globus president & CEO Dave Demsky told analysts during a second-quarter conference call transcribed by The Motley Fool.
StelKast was founded in 1992 to design, manufacture and distribute its own orthopedic implants. It has been supplying most of the major ortho companies for more than three decades, according to the company website.
