Wright Medical Group. Inc. said Wednesday, June 19, it will sell its hip and knee implants business, OrthoRecon, to a unit of Shanghai-based MicroPort Scientific Corp. for $290 million in cash.
Wright Medical Group. Inc. said Wednesday, June 19, it will sell its hip and knee implants business, OrthoRecon, to a unit of Shanghai-basedMicroPort Scientific Corp. for $290 million in cash. (Daily News File)
The Arlington, Tenn.-based medical device maker said the company will remain headquartered in Arlington, and Ted Davis, who is currently president of Wright’s OrthoRecon business will lead the MicroPort Orthopedic business.
Wright Medical said its OrthoRecon business earned about $269 million in global revenue in 2012. The device maker said the global hip and knee reconstruction market was about $14 billion in 2012, citing industry research.
In the past 18 months, Wright Medical has focused on growing its foot and ankle business and expanding the global reach of its OrthoRecon hip and knee implants division, said Robert Palmisano, president and CEO of Wright Medical.
“This next step in our transformation should enable both businesses to flourish as separate, global companies focused in their unique market space with strong management teams that will position them for continued success,” he said in a statement. “As a smaller, high-growth extremities company with breakthrough biologic opportunities, we will now be able to devote our full resources and attention on accelerating growth opportunities in this area….”
The medical device maker said it expects about $235 million to $240 million in revenue in 2013 for its extremities segment and will revise its previously issued outlook on its second quarter conference call, which is scheduled for August 1. Last year, the extremities unit generated about $214 in global revenue.
Wright Medical’s stock gained 4.2 percent to close at $26.00 on Thursday.