Author: Susan Kelly / Nov. 11, 2019
- Wright Medical on Friday posted a second consecutive quarter of slower revenue growth in financial results released just days after news that Stryker was buying the company, for $4 billion or $5.4 billion including debt.
- The Amsterdam-based orthopaedic device maker has been struggling with distribution problems affecting its Cartiva treatment for osteoarthritis of the big toe. In its third-quarter regulatory filing, Wright reported Cartiva sales decelerated to about $4.8 million in the United States and $0.9 million internationally, compared to Cartiva sales of about $8 million in the second quarter.
- Still, Wright management continues to project future growth for Cartiva, saying in the filing that the benefits of transitioning the business to the company’s direct U.S. lower extremities sales force from its former distributors will take time to be reflected in sales results.
Wright was coming off a bad run before Stryker last week said it would acquire the company. With Wright’s stock slumping 20% after the company’s second-quarter earnings release, Stryker saw its opportunity.