Orthofix to Acquire Kinesis Medical

Orthofix N.V. (London, UK) has agreed to acquire Kinesis Medical Inc. (Bloomington, MN, USA) for US$6 million. Along with the company, Orthofix will acquire Kinesis Medical's star product, OrthoTrac, a patented ambulatory lumbar traction system contained in a lightweight vest. Upon pneumatic activation, the traction system goes into effect, offloading the lower back discs. The device has been shown to produce long-lasting pain relief. Kinesis says it is the only noninvasive, self-administered, ambulatory treatment for sustained treatment of lower-back pain caused by degenerative or herniated discs that has been cleared by the U.S. Food and Drug Administration (FDA).

Orthofix has also agreed to acquire 10% of the equity of privately held Swiss-based Oped AG for $2.5 million. The agreement with Oped gives Orthofix the exclusive right to distribute Oped's products in the United States. Oped has developed an advanced bracing method for fracture and tendon management, called Vacoped. This device comprises a lightweight shell and a disposable vacuum element, which is fitted to the patient and when activated, molds to the shape of the limb. It gives firm support to an affected fracture or tendon and can totally replace successive casting or specially made functional braces.

Orthofix believes these two acquisitions will allow the company to serve the huge existing markets of casting and therapeutic bracing with unique 21st century technology. Orthofix's strategy is to bring tomorrow's products to market today, and Orthofix is well-positioned to do so very effectively, noted Charles W. Federico, president of Orthofix.