DJO parent Enovis completes ESAB spinoff, becomes stand-alone ortho device company

[Image courtesy of Colfax]DJO parent company Enovis (NYSE:ENOV) announced today that completed the spinoff of its fabrication technology business, ESAB (NYSE:ESAB).

Following the split,  Enovis — formerly Colfax — becomes a new stand-alone orthopedic device company while ESAB will focus on fabrication technology operating out of the Colfax headquarters in Annapolis Junction, Maryland.

According to a news release, immediately after the separation of the businesses, Enovis enacted a reverse stock split of all issues and outstanding shares of its common stock at a one-for-three ratio. Both Enovis and ESAB common stock will begin regular-way trading today — April 5, 2022 — on the New York Stock Exchange.

In connection with the separation, Enovis shareholders received one share of ESAB common stock for every three shares of Enovis common stock held at the close of business on March 22, 2022. Approximately 54 million shares (about 90%) of ESABR…

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Colfax announces board of directors for fabrication tech spinoff ESAB

Colfax (NYSE:CFX) today announced the setup of the board of directors for its previously announced fabrication technology spinoff.

Wilmington, Delaware-based Colfax announced last year that it plans to split into two publicly traded companies in 2022, with businesses including DJO forming a new stand-alone orthopedic device company called Enovis while the other company, called ESAB, will focus on fabrication technology operating out of Colfax’s Annapolis Junction, Maryland, headquarters.

Following the spinoff, which Colfax expects to consummate on April 4, the ESAB fabrication technology company will operate under the leadership of chairperson of the board, Mitchell P. Rales, according to a news release.

“Setting ESAB on a path for success and growth has been a priority since we first announced the separation,” Colfax President and CEO Matt Trerotola said in the release. “We have identified an incredibly talented and knowledgeable board of directors who …

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DJO parent Colfax’s medtech earnings up 29% in Q4, Enovis spinoff nears completion

[Image courtesy of Colfax]Colfax (NYSE:CFX) shares ticked up slightly on fourth-quarter results that demonstrated impressive growth in medical device sales.

The Wilmington, Delaware-based company posted profits of $10 million, or 6¢ per share, on sales of more than $1 billion for the three months ended Dec. 31, 2021, for a 75.6% bottom-line slide on sales growth of 23.6%. Adjusted to exclude one-time items, earnings per share were 59¢.

Colfax’s medical technology segment brought in revenues of $399 million for the quarter, representing a 29% leap from the same period a year prior.

The company also confirmed that it has completed most steps in preparation for the spinoff of a standalone orthopedic device business — which will be called Enovis — to take place near the end of the first quarter, subject to final approval from the board as well as market, regulatory and other customary conditions.

“Upon separation, both of these leading businesses w…

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DJO’s parent company to be called Enovis

[Image courtesy of Colfax]Colfax (NYSE:CFX) recently announced that its planned standalone ortho device company will be called Enovis.

“Enovis symbolizes the powerful combination of innovation and vision fueled by our passion for continuous improvement and reinforced by our drive to deliver superior clinical outcomes,” Colfax CEO Matt Trerotola said during a November 4 earnings call, transcribed by The Motley Fool.

“As we strategically pivot to a specialty medtech company focused on creating solutions that improve lives, the Enovis brand emphasizes the differentiated value and accretive foresight we will bring to healthcare professionals and their patients around the world.”

Trerotola said the separation of Enovis from the ESAB fabrication tech business remains on track for a Q1 2022 completion. Trerotola will serve as CEO of Enovis, which will be headquartered in Wilmington, Delaware, with a significant presence around DJO’s D…

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DJO acquires Mathys AG Bettlach

Colfax Corp.’s DJO this week announced that it entered into a definitive agreement to acquire Mathys AG Bettlach for an undisclosed amount.

Mathys makes and distributes products for artificial joint replacement, synthetic bone graft solutions and sports medicine. The acquisition is expected to strengthen DJO’s patient-focused innovation pipeline and broaden its reconstructive portfolio.

Get the full story on our sister site, Medical Design & Outsourcing.

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The 10 largest orthopedic device companies in the world

[Image from Pixaby]Pent-up demand could make orthopedic devices a hot space in 2021.

The COVID-19 pandemic was especially brutal for the orthopedic device industry. Many of the largest companies in the space saw double-digit percentage declines in revenue in 2020. Health providers delayed or canceled elective procedures to focus on the pandemic, and patients stayed away in droves.

It’s a new year now, though, and vaccines are rolling out. People don’t want to live with a bad knee or hip or back forever. Growth will eventually return for the industry, and orthopedic device companies are positioning themselves to be ready.

Rather than hunkering down during the pandemic, many ortho device companies chose shop for new technologies and major M&A deals. They’re reorganizing and launching new products ranging from surgical robots to smart implants.

Read on and discover the latest about the world’s 10 largest orthopedic device companies.

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DJO invests in Insight Medical Systems and its augmented reality for ortho surgery

The next-gen Augmented Reality Visualization and Information System (ARVIS) [Image courtesy of Insight Medical Systems]Colfax Corp.’s DJO has made a strategic investment in Insight Medical Systems and its Augmented Reality Visualization and Information System (ARVIS) for orthopedic surgeries.

DJO did not disclose the size of its investment in its news release. But Insight Medical Systems recently reported to the SEC on March 19 that it raised nearly $8 million from six investors.

Get the full story on our sister site Medical Design & Outsourcing. 

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MedTech 100 roundup: Industry sees largest fall since October

The medtech industry’s hot start to 2021 has finally come to a full halt after stocks fell harder than they had in more than four months.

MassDevice‘s MedTech 100 index ended the week (March 5) at 103.3 points, marking a -3.1% dip from the 106.65-point mark set one week before (Feb. 26). In less than a month, the fall has been more than seven points from the end-of-week tally of 110.63 points on Feb. 12.

Medtech’s lowest point of the week was on Thursday, March 4, when it fell to 102.85. The overall drop of about five points from the 107.88-point mark set on Monday, March 1, is the largest dip since the index slid from 97.2 to 91.01 between Oct. 23, 2020, and Oct. 30, 2020.

The all-time best for the index was 110.96, set just three days after that. The index had never reached even the 100-point mark before November 2020.

Still, the industry is in much better condition than it was around this time last year. Medtech’s latest mark means …

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Colfax to split to create new orthopedic device giant

Colfax (NYSE:CFX) plans to split into two publicly traded companies early next year — with businesses including DJO forming a new stand-alone orthopedic device company.

The split — announced yesterday — will create a to-be-named medical device company headquartered in Wilmington, Del., with a significant presence in Dallas. Present Colfax CEO Matt Trerotol will lead the medtech business, with Colfax EVP Brady Shirley serving as COO. Present Colfax EVP Shyam Kambeyanda will lead the other company — called ESAB — focusing on fabrication technology and operating out of Colfax’s present Annapolis Junction, Md. headquarters.

Colfax’s Medical Technology operating segment is expected to bring in $1.4 billion this year. When it becomes a stand-alone company in Q1 2022, it will likely be either the sixth or seventh largest orthopedic device company in the world. Its ranking will depend on the size of Zimmer Biomet’s planned spine and dental business sp…

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DJO acquires Trilliant Surgical and its foot and ankle implants

DJO announced that it acquired orthopedic foot and ankle implant maker Trilliant Surgical for an undisclosed amount.

Dallas-based Colfax (NYSE:CFX) unit DJO’s acquisition is meant to support its focus on expansion into the high-growth U.S. foot and ankle market, which the company touts as a $1 billion market, according to a news release.

Trilliant’s product portfolio covers foot reconstruction/fixation procedures and the company additionally offers the novel Arsenal Foot Plating System, which features a design for greater flexibility and speed of implant placement. The companies believe the Arsenal system is poised to “be a plating leader.”

“As a foot and ankle champion since 2007, we are excited to join the DJO family and expand Trilliant Surgical’s positive patient impact globally,” Trilliant CEO Jon Olson said in the release. “DJO’s unparalleled commitment to new product development, their iconic brands and strong growth trajec…

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Stryker may sell certain assets to enable Wright Medical purchase

Stryker (NYSE:SYK) has proposed a plan to divest certain assets to Colfax (NYSE:CFX)/DJO Global in an effort to complete its acquisition of Wright Medical (NSDQ:WMGI).

Kalamazoo, Mich.-based Stryker’s proposed divestitures of its STAR total ankle replacement product, plus related assets, and its finger joint replacement products, is in connection with the Federal Trade Commission’s review of the ongoing effort to purchase Wright Medical, according to an SEC filing.

Stryker’s proposal needs regulatory approvals and the execution of definitive documents, so there is no guarantee that it will go through, the filing said.

The acquisition has been in the works for several months, as Stryker announced the $4.7 billion purchase in November 2019. Since then, the FTC increased its scrutiny of the proposed merger in January and a Wright Medical shareholder filed a proposed class-action lawsuit to block it later that month, in addition to probing …

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