Stryker acquires Vertos Medical

Stryker press release

Dive Brief:

  • Stryker said Thursday it has agreed to acquire Vertos Medical, an Aliso Viejo, California-based company whose minimally invasive technology treats chronic lower back pain, for an undisclosed sum.
  • The Vertos procedure, which can be performed in an outpatient setting, is designed to provide pain relief for patients with lumbar spinal stenosis by restoring space in the spinal canal and reducing nerve compression.
  • “This acquisition strengthens our minimally invasive pain management portfolio with differentiated treatments and expands our reach across ambulatory surgery centers,” Andy Pierce, head of Stryker’s medical and surgical equipment and neurotechnology business, said in a statement.

Dive Insight:

The Vertos deal is the second acquisition this month by Stryker, after CEO Kevin Lobo signaled investors should expect an active deal pipeline in the second half of this year. Stryker also is buying Care.ai, an Orlando, Florida-based provider of patient monitoring and decision support tools to hospitals.

The Portage, Michigan-based orthopedics company in July acquired Artelon, which makes soft tissue repair technology, and in March bought joint replacement company Serf Sas.

While Stryker has put together a series of tuck-in acquisitions, other medtech companies have struck larger deals. On Tuesday, Johnson & Johnson said it would pay up to $1.7 billion to acquire heart failure implant maker V-Wave, after completing its $13.1 billion purchase of Shockwave Medical in May.

Boston Scientific in June agreed to acquire Silk Road Medical for $1.26 billion and proposed in January to buy Axonics for $3.7 billion.

Edwards Lifesciences has also been busy, picking up new companies and selling its critical care business to BD for $4.2 billion.

In the Vertos procedure, a physician uses specialized tools to remove small pieces of bone and thickened ligament. The procedure does not require an implant, general anesthesia or stitches.