Wright Medical plans to launch Darco International's foot and ankle device portfolio in the United States following its $17 million acquisition of the franchise.

Under the definitive cash agreement, announced March 5, Wright gains Darco's core surgical reconstructive products, including the MRS modular rear foot, MFS modular forefoot and FRS forefoot reconstructive systems. West Virginia-based Darco will retain other product lines, which include soft goods for trauma and wound care.

The procedure-specific systems offer a total of 10 different plating options, as well as specialized screw fixation systems for complex foot reconstruction surgeries. Darco's reconstructive kit, designed to provide fixation after forefoot osteotomies and fusion procedures, includes Twist-Off screws and Force compression screws.

The deal, expected to close early in the second quarter, gives Wright "the most comprehensive foot reconstructive product offering available," CEO Gary Henley said. The firm already markets the Charlotte foot and ankle fixation system.

The acquisition also establishes Wright in the German marketplace, where privately held Darco is the market leader in foot and ankle reconstructive implants, Wright says. In 2006, Darco's reconstructive foot surgery business generated net sales of $6 million, the bulk of which came from Germany.

The purchase will have a neutral earnings impact in 2007 and will be accretive after that, according to Wright. The company plans to update its financial guidance after the deal closes.

Last month, Wright inked a development and distribution agreement for xenograft foot and ankle implants with Regeneration Technologies (¹ Also see "Orthopedic News In Brief" - Medtech Insight, 19 February, 2007., p. 8). Following on that deal, the company aims to introduce a multi-purpose version of the Cancello-Pure biomaterial implant in the second quarter, followed by indication-specific implants by year-end.

Arlington, Tenn.-based Wright, which manufactures reconstructive joint devices and biologics, reported sales of $338.9 million in 2006. Shares of the firm closed at $21.04, down 1.5% from March 2.

- Katherine Thomas (km.thomas@elsevier.com)

Wright Expands Foothold In Extremities Market With Darco Purchase

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