Thursday, June 20, 2013

MassDevice: MicroPort And Wright Medical Group Flip The Script

Apparently MicroPort and Wright Medical (NSDQ:WMGI) didn't get the memo – American med-tech companies are supposed to buy Chinese med-tech companies and not the other way around. But in a surprising announcement Wednesday night, the two companies revealed that MicroPort has reached an agreement to acquire Wright Medical's OrthoRecon business for $290 million in cash.

This is a bold move for both parties. It not only brings MicroPort into the global hip and knee market, but also establishes a meaningful presence for the company in the U.S. For Wright Medical, it removes a significant amount of execution risk, and makes the company a pure-play on the much faster-growing markets for orthopedic extremities and biologics.

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