Stryker Corporation, a medical technology company based in Michigan, yesterday reported a definitive agreement to acquire MAKO Surgical Corp. for a purchase price of about $1.65 billion. MAKO’s stock price exploded following the announcement, gaining more than 83 percent on the day to close at $29.45.
MAKO builds robots designed to assist with orthopedic surgery. The company currently markets the RIO Robotic Arm Interactive Orthopedic System and a family of implants for a partial knee resurfacing procedure to treat early- to mid-stage osteoarthritis. It also offers a new robotic arm application for patients in need of a total hip replacement.
In June, the company announced that 3,274 MAKOplasty procedures were performed during the second quarter of 2013, a 10 percent increase over the first quarter and a 26 percent increase over the procedures performed in the second quarter of 2012. In total, 29,000 procedures had been performed since the first procedure in June 2006 (the company was founded in 2004). At the time, the worldwide commercial installed base of RIO systems was 171 systems and the domestic commercial installed base was 164 systems.
In terms of revenue, the company earned $28.2 million during the second quarter and $53.0 million for the first six months of the year, a 22 percent increase over the previous year.
“MAKO has established a compelling technology platform in robotic assisted surgery which we believe has considerable long term potential in joint reconstruction,” Kevin A. Lobo, president and CEO of Stryker, said in a statement. “The acquisition of MAKO combined with Stryker’s strong history in joint reconstruction, capital equipment (operating room integration and surgical navigation) and surgical instruments will help further advance the growth of robotic assisted surgery. Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience. We look forward to welcoming the MAKO team to Stryker.”
[ photo courtesy of Mako Surgical ]