Warsaw, Indiana-based OrthoPediatrics Corp. has announced an agreement to acquire Pega Medical. The acquisition includes Pega Medical’s innovative Fassier-Duval Telescopic Intramedullary System, designed to treat osteogenesis imperfecta and other types of bone deformities.
OrthoPediatrics Acquires Pega Medical
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The transaction is valued at up to $33 million total, including $31 million in cash payment and an additional $2 million in stock. OrthoPediatrics increased its line of credit from $25 to $50 million before the acquisition and will use $31 million of the credit from newly expanded creditor Squadron Capital to finance the acquisition.
The company is increasing its annual revenue guidance range for 2022 to $125 to $128 million, reflecting a growth of 27% to 31%.
OrthoPediatrics, founded in 2006, focuses solely on advancements in pediatric orthopedic technology and tools. The company touts the most comprehensive pediatric orthopedic product portfolio, currently marketing 37 surgical systems designed for treatment of pediatric trauma, deformity, scoliosis and sports medicine care. OrthoPediatrics products are marketed and utilized in the United States as well as in 45 other countries.
Montreal-based Pega Medical is a med tech company focused on trauma and deformity treatment. Pega’s Fassier-Duval Telescopic IM System, developed for treatment of child bone deformities with osteogenesis imperfecta without disruption of growth development, has been used internationally since in 2000.
Since 1994, the company has worked with universities, OEMs [original equipment manufacturers], and surgeons from around the world to develop, evaluate, regulate and approve innovative pediatric devices. Pega Medical products that can currently be found in more than 75 countries.
David Bailey, OrthoPediatrics CEO stated, “We are excited to announce the agreement to acquire Pega Medical. Similar to OrthoPediatrics, the Pega organization 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 pediatric orthopedics. We are grateful for the leadership and vision of the Pega team, and founder Ariel Dujovne in particular. I am looking forward to building on his legacy and our shared cause of helping even more KIDS with orthopedic conditions!.”
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This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?
Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.
We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.
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