In Spine, A Flurry of Deals

A conservative industry, orthopedics rarely sees a lot of acquisition activity. But a number of deals among spine companies recently underscores how hot the spine market is right now and the importance of acquisition as a strategy for realizing its potential.

The clinically conservative nature of orthopedics has always defined the orthopedics device industry. In a field where gold standard procedures achieve 98-99% success rates and have changed very little over 30 years, there is little impetus for suppliers to take dramatic steps to change either technology or business models. That's why, aside from a handful of large, opportunistic mergers a couple of years ago, such as Stryker Corp. 's acquisition of Howmedica Osteonics Corp.[See Deal] or Johnson & Johnson 's purchase of DePuy Inc. [See Deal], the orthopedics industry has seen little large-scale M&A over the past several years.

But even orthopedics isn't immune from significant technological advances, and when such advances arise, product companies can be quick to...

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