Switzerland-based Medartis Holding AG (SIX: MED) announced it has completed the acquisition of Nextremity Solutions Inc., a strategic commercialization organization located in Warsaw, Indiana. The total purchase price for the transaction will be up to $70 million and includes milestone and earn-out payments of up to $30 million.
This acquisition will enable Medartis to further accelerate its US extremities business by gaining access to a comprehensive product pipeline, strong relationships to US design surgeons and an experienced R&D team. This transaction will provide significant growth opportunities in the US extremities market and potentially elsewhere. Medartis also acquires a modern regional manufacturing base and a complementary leadership organization.
The first products with significant sales potential are expected to be launched in early 2023 and will therefore not have a material impact on the company’s sales guidance in 2022. To maximize the business impact, the two organizations are synergistically merged. As part of this merger, NSI’s CEO Rod K. Mayer is appointed President of Medartis US as a non-executive member. Rod is a highly-experienced industry expert with a long and distinguished track record in sales and product development in the medical devices industry. In his role, he will report directly to CEO Christoph Brönnimann and lead Medartis’ US organization, focusing specifically on leading the US sales force.
Medartis will continue to base its local organization in Exton (Pennsylvania) and Warsaw (Indiana) in accordance with the functional area, while product development and manufacturing will be located at NSI’s former headquarters. “I am honored and excited to lead the combined Medartis US team. We intend to build on our shared vision and common culture to deliver meaningful innovation for our customers. I believe this is an impactful combination that will support an attractive growth trajectory in the future,” commented Mayer.
Lisa C. Thompson, President North America, has decided to resign following the successful reorganization of the US business and the acquisition of NSI. She will support Rod K. Mayer during the transition phase and plans to resume her consulting activities in the medical device industry. CEO Christoph Brönnimann commented: “I am delighted that Rod K. Mayer and the rest of NSI’s leadership team are complementing our US organization. I would like to express my gratitude to Lisa for her dedication and commitment to this company. Lisa has repositioned our US organization over the past two years, shaping it into a sustainable, competitive, and customer-centric sales organization. I wish her the very best in her future endeavors.”
