Canton, Mass.-based Organogenesis acquired Birmingham, Ala.-based NuTech Medical to tap in to the profitable orthopedic and spine tissue product market, according to The Boston Globe.
Here's what you need to know:
1. The market for tissue products used in spinal and orthopedic surgeries nets approximately $450 million in total annual sales and is expected to reach over $750 million by 2020.
2. NuTech's roughly 40 employees will operate as a new division of Organogenesis, a private company which employs 265 out of 590 employees at its headquarters and manufacturing site in Canton.
3. Organogenesis chief executive Gary Gillheeney said, "This rounds out our portfolio and fills a product gap… It provides us an entrance into the orthopedic surgical space. Amniotic products open up about 40 percent of the wound care market that we don't have access to."
4. Organogenesis, which sells Apligraf, Dermagraft and more regenerative medicine products, laid off 150 employees in 2014 after CMS lowered the company's reimbursement rates but expects to resume its growth and add 100 employees by the end of the year.
5. The acquisition's financial terms were not disclosed.
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