OrthoPediatrics has signed an agreement to acquire Pega Medical and its Fassier-Duval Telescopic Intramedullary System in a deal valued at up to $33m.
The system is a self-extending rod that has been designed for patients suffering from Osteogenesis Imperfecta (OI) skeletal dysplasia, as well as other bone deformities.
It has been developed to prevent or stabilise fractures while correcting deformity of long bones as growth occurs.
The rod design includes a male component that is attached to the distal epiphysis and a female component attached to the proximal epiphysis.
The Fassier-Duval Telescopic Intramedullary System is available in five diameters, specifically 3.2, 4.0, 4.8, 5.6 and 6.4mm, and a length of up to 420mm.
OrthoPediatrics said that the deal will expand its portfolio of trauma and deformity systems developed for paediatric orthopaedics.
Under the deal, the company will make an upfront cash payment of $31m to Pega Medical, along with $2m in stock that includes certain restrictions for three years.
To help fund the transaction, OrthoPediatric successfully increased its line of credit with Squadron Capital from $25m to $50m.
OrthoPediatrics CEO David Bailey said: “Similar to OrthoPediatrics, the Pega organisation has been focused exclusively on addressing unmet needs for children whose lives have been impacted by musculoskeletal disorders and diseases.
“Their product offerings include novel technologies to treat some of the most unique conditions in paediatric orthopaedics.”
The company is exclusively focused on advancing the paediatric orthopaedics field and has developed a comprehensive product offering that covers scoliosis, trauma and deformity, and sports medicine/other procedures.
At present, OrthoPediatrics markets 37 surgical systems, which together serve three of the largest categories in the paediatric orthopaedic market.
Last May, the company introduced its RESPONSE Neuromuscular Scoliosis System to treat neuromuscular scoliosis in paediatric patients.