Italian device maker, Lima Corporate SpA finds itself as the company that holds the key to underlining Zimmer’s acquisition of Biomet. Lima will purchase the Zimmer® Unicompartmental High Flex Knee (ZUK) and the Biomet® Discovery™ Elbow System within the European Economic Area (EEA) and Switzerland markets, as well as the Biomet® Vanguard™ Complete Knee System for Denmark and Sweden. The deal will fulfil the European Commission’s requirement that certain assets were to be divested upon completion of the Zimmer/Biomet merger.
The Unicompartmental (UNI) knee segment represents approximately six percent of the $1 billion plus total knee replacement market. Currently Lima is not present in the UNI knee segment and, with a leading product such as ZUK, reckons on entering this segment while expanding the use of its own newly launched Physica system. Lima will also take over the Biomet® Vanguard™ Complete Knee System for Denmark and Sweden through a specific license agreement, in countries where the Vanguard™ Knee is the leading choice in knee reconstruction.
The agreement also transfers to Lima the non-exclusive rights for the manufacturing, marketing and sale of an exact copy of the Vanguard™ Knee in the EEA. The company has specialized in the production of titanium since the company was founded, so clearly believes it has the capability to autonomously run all production for these three product lines as specified by the agreement.
Lima is also purchasing the Biomet® Discovery™ Elbow System for the EEA and Switzerland markets, a position it sees as a natural extension of its leading position with its total shoulder arthroplasty implant that has been on the market for more than 12 years. The European elbow arthroplasty market is estimated to be $17 million.
The European Commission has adopted the decision to approve Lima Corporate as a suitable buyer. The agreement between Lima and Zimmer® will become effective after the merger between Zimmer® and Biomet® has been closed. The remaining “to do” list includes gaining the U.S. approval for the merger.
“This year marks the 70th anniversary of Lima Corporate and entering into such an important agreement is another milestone that marks the success of Lima today and sets the base for the future months and years to come,” said Gabriele Lualdi, Chairman of the Board for Lima Corporate.
Luigi Ferrari, CEO of Lima Corporate stated; “With the launch of Physica, the acquisition of ZUK puts Lima on the map as a serious player in the knee market. To be focused on our historical markets, we decided that the EEA and Switzerland markets would best fit our strategy. The acquisition of the Vanguard™ portfolio will provide Lima an immediate market share in Denmark and Sweden, countries that are primarily tender-based.”
Source: PR Newswire