Corin, a U.K. orthopedics company playing primarily in the joint replacement segment, entered into a binding agreement to purchase U.S.-based OMNI, makers of the OMNIBotics® robot-assisted total knee replacement system. The acquisition accelerates Corin’s growth strategy and gives it a greater foothold in the U.S.
OMNIBotics combines a robotic cutting guide with what is billed as “the world’s first robotic tool to measure ligament function.” Combined with the Optimized Positioning System for hips, OMNIBotics gives Corin flagship technologies across multiple segments as they strive to create a connected digital ecosystem from surgical planning to implant positioning to remote patient monitoring.
Corin is the latest orthopedic company to embrace the ecosystem model. The strategy aims to provide surgeons with end-to-end solutions that can result in better procedure flow with improved economic and clinical outcomes. To the company’s benefit, these ecosystems can nearly monopolize an operating room, making it very disruptive for surgeons to use another vendor. Additionally, many companies recognize the ability of robotics to drive improved sales mix by facilitating upselling.
ORTHOWORLD estimates that Corin is a top 15 player in knee and hip replacement, with total 2018 orthopedic revenue between US $130MM to $140MM. The addition of OMNIBotics gives Corin a distinct advantage over similarly-sized companies, arming them with a differentiated technology available to few companies outside of the top tier players.
Corin was already connected with OMNI through its 2018 acquisition of Australia-headquartered Global Orthopaedic Technology (GOT). GOT had exclusive rights to manufacture, market and distribute OMNI’s APEX™ Knee in Australia, South Africa and New Zealand. GOT also acquired rights to market OMNIBotics robotic-assisted total knee and computer-assisted total hip replacement technology in three countries.
Both Corin acquisitions were backed by Permira funds, which acquired Corin in 2018. The OMNI acquisition is expected to close in early March 2019. Financial terms were not disclosed.
“The US market for robotics in orthopedics is growing at a very rapid pace, and with the addition of OMNI’s technologies, we expect Corin to remain at the forefront of development in robotics and computer assisted surgery. We are excited about the potential to scale OMNI’s highly innovative products in the US and into other geographies where Corin operates," says Henry Minello, Principal in the Healthcare team of Permira. "We are very pleased to support Corin’s management to bring these life changing technologies into new markets."
Sources: Corin Group; ORTHOWORLD Inc.
Images courtesy of OMNI