A medical device company specializing in joint preservation has changed ownership, returning to management by its former executives. Arthrosurface, Inc., which develops joint restoration solutions for active patients, was acquired from Anika Therapeutics (NASDAQ: ANIK) by a group led by Primo Medical Group executives and two former Arthrosurface leaders.
Key Points
- The acquisition was completed by Primo Medical Group executives along with former Arthrosurface leaders, with Phoenix Brio serving as the parent company for Arthrosurface.
- Shane Shankle was appointed as Arthrosurface’s new President, while Frank Fedorowicz will serve as Chief Operating and Financial Officer.
- Arthrosurface’s product portfolio consists of more than 150 different surface implant curvatures across multiple joints.
- Arthrosurface will continue operations from West Bridgewater, Massachusetts, with no expected changes in service or product availability for customers and distributors.
The divestiture from Anika Therapeutics returns Arthrosurface to leadership by executives familiar with its operations, potentially affecting the company’s strategic direction in the competitive joint preservation market.
The Data
- Arthrosurface’s product portfolio includes more than 150 different surface implant curvatures for the knee, shoulder, wrist and toe designed to treat orthopedic conditions from trauma, injury and arthritic disease.
- Among 64 reported hallux MTPJ implant adverse events voluntarily submitted to the FDA database through 2018, Arthrosurface’s ToeMotion represented 20.3% and HemiCAP represented 10.9% of reports.
- The 2020 study of FDA adverse event reports found component loosening (34%) and infection (14.1%) as the most common complications for hallux joint implants.
- According to Grand View Research, the global joint reconstruction devices market reached $27.46 billion in 2023 and is projected to grow at 4.3% annually.
- According to CDC data, approximately 21.2% of U.S. adults (53.2 million people) had arthritis between 2019-2021, creating substantial demand for joint preservation solutions.
Industry Context
As a leader in joint preservation, I’m excited to drive our company’s growth plan by delivering products that help patients maintain an active quality of life.
Shane Shankle, Arthrosurface’s newly appointed President
Joint preservation surgeries represent a growing segment within orthopedics, though they face distinct challenges. A 2020 study published in the Journal of Arthroplasty found that patients undergoing total joint replacement after failed joint preservation procedures experienced longer operative times and higher complication rates compared to primary replacements.
Primo Medical Group, which led the acquisition, operates as a contract manufacturer and has previously incubated and co-funded several medical technology companies over the past 24 years. The group offers outsourcing solutions including OEM product distribution, engineering services, and supply chain management. Primo Medical Group’s portfolio of incubated companies includes Angiolink Corporation (acquired by Medtronic), Arthrosurface (previously acquired by Anika Therapeutics), Spirus Medical, Inc. (acquired by Olympus), and several others. The acquisition represents a return of Arthrosurface to management familiar with its origins and operations.
