While various sectors showed a decline in mergers and acquisitions (M&A) during Q4 2020, deals in the orthopaedics space did not show any signs of slowing down. Major players such as Stryker, a leading manufacturer of orthopaedic, medical, and surgical products, are looking to expand their portfolios by integrating new products from other segments. For example, Stryker intends to incorporate wearables and smart implants into its orthopaedics segment. If Stryker is successful, this approach will open up more opportunities in the sector because competitors will soon follow with their own acquisitions.

Stryker’s acquisition of OrthoSensor, a medical device company that specialises in sensor technology for total joint replacement procedures, will allow Stryker to strengthen its position within the orthopaedics market by combining sensor technology with data analytics to quantify orthopaedics and improve robotic surgery. Another deal in this space is Smith & Nephew’s acquisition of the Extremity Orthopaedics business of Integra LifeSciences Holdings Corporation. Smith & Nephew will be able to expand its associated portfolio, which already includes implants and instruments for extremities, to enter the shoulder replacement and foot and ankle segments.

According to GlobalData’s Deals database, 15 major orthopaedics deals were completed in Q4 2020 compared to just five deals in Q3 2020, representing a three-fold increase. At the time of writing, five deals have already been completed in January 2021 alone, which shows a promising trend for the rest of Q1 2021. GlobalData projects the global market value for orthopaedic devices to grow at a compound annual growth rate (CAGR) of 4% to $64B by 2025, driven by the rise in acquisitions within the orthopaedics space in recent months. The strong continuation of deals into Q1 2021 within the orthopaedics segment will promote further growth of the overall market.