Orthofix Medical (NSDQ:OFIX) announced that it completed an asset purchase agreement with Wittenstein SE to acquire the assets associated with the Fitbone limb lengthening system for $18 million.
Lewisville, Texas–based Orthofix also acquired other potential applications of the technology, which are in preliminary development, including the Fitspine system for early-onset scoliosis. The agreement consists of $18 million in cash and a manufacturing supply contract with Germany-based Wittenstein SE.
The Fitbone intramedullary lengthening system is for limb lengthening of the femur and tibia bones. It includes a lengthening nail that is designed to be surgically implanted in the bone through a minimally invasive procedure, one which has been performed more than 3,500 times over more than 15 countries, according to a news release.
Orthofix said the acquisition of Fitbone makes it the only orthopedic company that offers a comprehensive portfolio of both internal and external fixation solutions for limb reconstruction.
“Founded 40 years ago as an extremity fixation company, Orthofix has a long history of cutting-edge solutions to treat patients born with limb discrepancies,” Orthofix President & CEO Jon Serbousek said in the news release. “The addition of the Fitbone intramedullary lengthening system further rounds out our limb reconstruction offerings and is well aligned with our strategy of investing in innovative products to drive growth within our core businesses.”
Fitbone has approval in the U.S. and in Europe, according to the news release. The companies expect the acquisition of the product to close by the end of the first quarter of 2020.
“We are proud that we could bring a product such as the Fitbone intramedullary lengthening system to the market to help people in need of limb lengthening,” said Wittenstein SE CEO Bertram Hoffmann. “It has long been our goal to increase global availability. We are pleased that through Orthofix, more surgeons and their patients will have access to this innovative technology that can make a huge difference in an individual’s quality of life.”