- Restor3d reached an agreement to buy Billerica, Mass.-based Conformis, adding personalized knee and hip replacement devices to its own portfolio of 3D-printed orthopedic implants.
- Conformis, which had focused on making personalized implants, pivoted last year to offer its knee implants in 12 sizes and its fully personalized system as an upgrade option. The change was part of the company’s plan to target ambulatory surgery centers (ASCs).
- The pivot is yet to pay off and contributed to a 17% decline in first quarter sales. Down to $37.8 million in cash, Conformis accepted a $2.27 per share offer from restor3d that represents a 96% premium over its prior closing price.
Conformis, which was founded in 2004, was focused on a fully personalized knee implant. The company continues to offer personalized implants but is now primarily focused on the Imprint knee system, which is designed to bridge the gap between customized and off-the-shelf devices.
Patients treated with Imprint undergo a CT scan to capture measurements and a 3D picture of their knee joints. Then, software chooses the optimal implant from 12 size options based on the measurements. Conformis continues to offer the fully personalized iTotal Identity system, but only as an upgrade option. Imprint is now its default offering.
Durham, North Carolina-based restor3d operates in adjacent markets, providing personalized 3D-printed orthopedic products for use in upper extremity, spine, and foot and ankle procedures. The venture capital-backed company acquired part of its portfolio in a merger with ankle replacement maker Kinos Medical in 2021.
The deal to buy Conformis, which is scheduled to close in the third quarter, will add hip and knee devices to the orthopedic portfolio. In a statement, restor3d CEO Kurt Jacobus said the combined company will have the opportunity to “offer clinically differentiated and cost-effective solutions across the orthopedic landscape,” including shoulder, foot and ankle, spine, and large joints.
At this stage, it is unclear how the deal will affect the almost 300 people who work at Conformis. Mark Augusti, the CEO of Conformis, wrote to employees about the impact of the restor3d deal, noting that “there are uncertainties that we need to work through.”