MicroPort Scientific Corporation has recently announced that it has acquired OrthoRecon business from Wright Medical Group, Inc. The transaction establishes MicroPort Orthopedics as the sixth largest multinational hip and knee reconstruction company, with global headquarters in Arlington, Tennessee. As a result of the acquisition, MicroPort now holds U.S. manufacturing, global infrastructure, logistics and operations in the top four global orthopedic markets, as well as established hip and knee franchise brands.
MicroPort Orthopedics Chief Executive Officer Ted Davis stated in the January 13, 2014 news release, “This is an exciting transaction for the MicroPort Orthopedics team, our partners, our customers, our patients and the communities we operate in. We will be building upon 60 years of innovative leadership in the hip and knee industry to grow our orthopedics business segment and establish MicroPort as a worldwide provider of effective and affordable orthopedics management solutions.”
“MicroPort’s commitment to growth and research and development is the engine that drives our leadership position in the cardiovascular market in China today, ” said Jonathan Chen, VP International Business & Investor Relations, MicroPort Scientific. “This philosophy extends to MicroPort Orthopedics as well as shareholders, patients and partners who can expect that our orthopedics business will be just as innovative.”
Regarding first steps as they integrate this new business in the overall structure, Davis told OTW, “One of the advantages of this transaction is that there is little ‘integration’ required. The entire management and commercial team is in place already, our manufacturing facility remains in Tennessee, and the support functions have been re-staffed. We have already established key communication lines in the obvious areas of finance, scale up of the domestic China business and corporate governance. Our focus is now on executing our turnaround plan!”
He added, “One year from now, we want to have re-energized the business, both culturally and on business fundamentals. We are off to a great start. Our goals for 2014 center around re-invigorating the growth drivers of the business, including R&D, marketing and medical education investment, with the additional effort to ensure our global sales teams embrace the opportunity with MPO. Our goal is to exit 2014 having stabilized the business, thus setting the stage for growth in 2015. There are also some specific investments we need to make in 2014 that will begin to contribute in 2015, most obviously, building out our infrastructure in China to leverage MicroPort’s market leading position in the cardiovascular segment.”
