Globus Medical snaps up allograft maker Transplant Technologies (MassDevice)
Globus Medical acquires Transplant Technologies of Texas, a provider of bone allografts, biomaterials and soft tissue products, for an unspecified amount
Globus Medical (NYSE:GMED) said it acquired Transplant Technologies of Texas, a San Antonio-based provider of bone allografts, biomaterials and soft tissue products, for an unspecified amount.
Transplant Technologies of Texas processes sterile human tissue and distributes allograft implants including machined spine implants, demineralized bone matrix, sponge allografts and traditional bone allografts. TTOT also processes and distributes sports medicine tendons, birth tissue allografts, and dermal allografts.
Founded in 1993, TTOT claims that its products have been used in more than 600,000 implant procedures.
“TTOT’s products and capabilities will better position Globus in existing allograft markets while also providing a dedicated source of supply for our extensive pipeline of products utilizing human allograft tissue,” said David Paul, CEO of Audubon, Pa.-based Globus Medical, in prepared remarks.
Globus said it plans to grow TTOT’s operations in Texas and maintain the existing relationships with its distribution partners, while pumping its products to its own sales channels.
For 2015, Globus anticipates a contribution from TTOT of $12 million in annual sales and a neutral impact to fully diluted earnings per share for the year.
In the 2nd quarter, Globus sales were $113.6 million, up 6% from a year earlier, with profits totaling $20.6 million, or 22¢, up 178% compared with Q3 2013. The company discontinued a distributor relationship early during the quarter, which dampened sales.
“We are maintaining some of the business,” said Dave Demski, president of Globus, in an Augustconference call. “We’d lost a significant amount of it, but to get back to the levels that it was – I mean that will take at least a year to work through that cycle and probably more.”