This ends the death spiral for Conformis.
ConforMIS was founded in 2004 and went public in 2015. The company had around 300 employees and has raised an amazing $523M.
Great products, terrible business model. Conformis will always be known for paving the way for mass personalized TKAs, but they were never able to make a profit. Last year, $62M in gross sales, but Conformis somehow lost $50M. Ouch!
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Under the agreement, Restor3d, a 3D-printed orthopedic company, acquires all outstanding shares of Conformis common stock. The deal includes a purchase price of $2.27 per share. That represents a 96% premium to the closing price on June 22, 2023. Restor3d intends to make the purchase in cash.
“This combination will create a leading personalized 3D-printed medical device company,” said Restor3d CEO Kurt Jacobus. “Together, we share a common belief in the power of personalization. By leveraging the strengths in our respective portfolios around artificial-intelligence-driven implant design, digital automation, and 3D printed osseointegrative biomaterials, we see tremendous opportunity to offer clinically differentiated and cost-effective solutions across the orthopedic landscape, including shoulder, foot & ankle, spine, and large joints.”
CFMS shares nearly doubled to $2.18 apiece by afternoon trading today. MassDevice‘s MedTech 100 Index was down slightly.
Conformis’ board of directors unanimously approved the transaction. According to a news release, the board determined the transaction to be “in the best interests of the company’s stockholders.”
The companies expect the transaction to close by the end of the third quarter of 2023. It remains subject to approval by Conformis stockholders and other customary closing conditions.
“After nearly 20 years of revolutionizing the orthopedic industry with personalized treatment and patient choice, this transaction is a testament to the value of our portfolio and the strength of our core technology and intellectual property,” said Mark Augusti, CEO at Conformis. “Following a diligent and thoughtful process, the board has unanimously approved this transaction, which delivers positive benefits to all of our stakeholders.”