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Orchid Orthopedic Solutions, a provider of design and manufacturing for the orthopaedic device industry, signed an agreement to acquire Cam Bioceramics‘ coating facility in Suzhou, China. The transaction is expected to close in late 4Q15.
The divestiture allows Cam to focus on its core engineering, development and contract manufacturing of orthobiologic calcium compositions. Cam China provides hydroxylapatite (HA) plasma coating services and broadens Orchid’s coating capabilities to comprise the U.S., Europe and Asia.
This represents Orchid’s first facility in China. The transaction follows Orchid’s late-3Q15 purchase of Alhenia, a provider of coated implants in Switzerland, whose portfolio included ceramic and other coating technologies. In mid-2Q15, Orchid opened a facility in India that is also planned to provide finishing and coating services.
Orchid’s coatings and surface treatments now include spherical bead, Asymmatrix®, Osseomatrix®, titanium plasma spray, HA, VPS on PEEK, VPS Ti on Polyethylene, ceramic coatings and Resorbable Blast Media.
Essential to new market expansion is the formation of strategic partnerships that offer resources and expertise, and a global strategy is crucial to remain competitive. For example, results from UPS’s Seventh Annual Pain in the (Supply) Chain Survey (2014) identified top expansion markets of China, the U.S., Brazil and India.
China’s orthopaedic market is experiencing high growth, at ~15% to 20% per year. India’s orthopaedic market sees growth of ~15% per year, which should remain buoyed by the country’s demographics, increased health awareness and growing public and private insurance market. India’s population is expected to surpass China by 2040.
Read additional points on why orthopaedics will grow in these regions in BONEZONE, “International and Domestic Manufacturers Compete to Serve Growing Asian Population.”
