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Restor3d Is Making Orthopedics More Personalized with Conformis Acquisition
The Durham, NC-based company's acquisition of Conformis could close by the end of 3Q23.
June 23, 2023
3 Min Read
Image credit: designer491 / iStock via Getty Images
The orthopedics space is about to become more personalized because of a potential merger that involves a dash of customized implants; a pinch of 3D printing; and an ounce of artificial intelligence.
Restor3d said it would acquire all outstanding shares of common stock of the Conformis at $2.27 per share in cash which represents about a 96% premium to the closing price of Conformis stock on Thursday.
The deal is expected to close by the end of 3Q23. Durham, NC-based company restor3d focuses on 3D-printed implants and is using AI and Machine learning to design the implants and related instruments, according to a report from wraltechwire.com. The firm was founded in 2017 and was originally known as Additive Device.
Conformis is known for developing custom orthopedic implants for patients and breaking away from the one-size fits all model.
“This combination will create a leading personalized 3D-printed medical device company,” Kurt Jacobus, CEO of restor3d said in a release. “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.”
“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,” Mark Augusti, Conformis CEO said in a release. “Following a diligent and thoughtful process, the Board has unanimously approved this transaction, which delivers positive benefits to all of our stakeholders. We are excited to enter the next chapter for Conformis with restor3d, which allows us to continue helping patients live productive lives after knee or hip surgery and providing the surgeon community with innovative products and services."
Conformis went on a roller coaster ride during the early days of the pandemic. The firm had to furlough about 1.3 of it its workforce because of a sharp decline in elective procedures. With the help of a $4.7 million loan through the Paycheck Protection Program, the custom orthopedic implant company was able to bring back most of its furloughed staff.
Conformis also went through a huge change in its philosophy. The company, which was founded on custom implants added standard knee implants to its portfolio early in the pandemic.
In a May earnings call, Agusti gave a little bit of color as to how the knee implant business was performing.
“Our U.S. knee revenue has not yet returned to growth,” Augusti said according to a Seeking Alpha transcript of the earnings call. “The lingering effects from our shift to the new business model and our operational challenges have kept pressure on this important part of our business. Nevertheless, we believe we have the right business model …”
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