IMPLANET Sells Knee Biz to Menix Group’s SERF Company

IMPLANET, a medical technology company specialized in vertebral and knee surgery implants, completed of the sale on October 29 of its MADISON knee prosthesis business to the MENIX Group’s SERF company for a total of € 5.0 million to which a price supplement will be added.
 
Ludovic Lastennet, IMPLANET’s CEO, said: “Strategically decided in 2020 and initiated in early 2021 with the acquisition of OSD, the refocus on our Spine business is materializing with the divestment of our MADISON knee prosthesis range to French group MENIX. This operation will allow IMPLANET to devote 100 percent of its resources to its historical activity. Our objective is henceforth to become an innovative and leading player on the spine surgery segment and to offer surgeons and patients outstanding products for treating major pediatric deformities and adult degenerative disorders that account for the majority of surgical procedures on our priority markets”.
 
This divestment of the MADISON range concerns the entire activity, from the design to the marketing of the implants. In order to ensure the continuity of regulatory obligations, a contract under which IMPLANET will continue to manufacture the products and an exclusive distribution contract by SERF have also been signed between the parts. This transition period will end 6 months after SERF has obtained the CE mark.
 
The sale price of €5.0 million will be subject to an adjustment related to the inventory items sold. A first installment of €2.7 million was paid on October 29 and the balance will be paid in instalments over time depending on the achievement of regulatory milestones related to the CE marking. In addition, a price supplement of up to €0.5 million is also planned for IMPLANET, paid in the form of a commission on sales made by SERF with the KiCO partner.
 
This operation is in line with IMPLANET’s stated intention of positioning itself as a benchmark player in the treatment of spinal disorders. The company is now fully focused on developing its strategic spine business, and the financial resources resulting from this divestment will be used to strengthen the JAZZ and OSD ranges, accelerate sales momentum and continue the Company’s intellectual protection strategy.
 
The MADISON business, to which a collaborator was attached, generated revenue of €2.1 million with a current operating income of €0.1 million and an operating loss of €0.2 million in 2020. In the first nine months of fiscal year 2021, this activity generated revenues of €1.5 million.