Although the acquisition of Sofamor Danek by Medtronic came as a surprise to some, both Medtronic and Sofamor Danek had in recent years begun to move toward a common ground around neurosurgery. Sofamor Danek should benefit from Medtronic's growing presence in neurological medicine, especially surrounding minimally invasive and image-guided neurosurgery. In announcing the deal. Medtronic noted that its neurological business will, with Sofamor's revenues included, account for 28% of the company's overall sales this year, a figure Medtronic expects to grow to 40% in the next ten years.
Just three years ago, the spinal market was something of an
orthopedic backwater: small, off the beaten path, an interesting
place to play but one that much bigger, mainstream orthopedic
companies tended to look at only from a safe distance. The high
risk of litigation, significant technology differences, and a
completely separate customer base made whatever potential synergies
existed with a traditional orthopedic implant business pale before
the obstacles.
The spinal market is now highly consolidated, with much of the recent acquiring done by large suppliers, not all of...
