OrthoHelix Surgical Designs

OrthoHelix Surgical Designs

Medical device firm developing a line of implants and instruments for use in small bone reconstructive surgery.

HQ location
Laredo, United States
Launch date
Employees
Enterprise value
$135m
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$135m

Valuation: $135m

Acquisition
Total Funding000k
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OrthoHelix Surgical Designs established itself as a specialized developer of implants and instruments for the small bone reconstructive surgery market, focusing on the foot, ankle, hand, and wrist. The company was founded in 2004 by David Kay and Marty Wynkoop. The founding vision stemmed from the recognition of a significant need for more anatomically specific and effective tools for surgeons operating on small bones, moving beyond the generic metal plates that required manual contouring during surgery.

The company's business model was centered on providing instrument sets to hospitals and surgical centers, generating revenue from the sale of the disposable implants used in procedures, a strategy likened to the razor and blade model. This approach required substantial investment in inventory but served as a crucial marketing tool to compete with larger orthopedic firms. By 2012, OrthoHelix had grown to approximately 80 employees and was projecting annual sales of around $29 million, with gross profit margins exceeding 80%. Its product portfolio was led by the MaxLock Extreme small bone screw and plate systems, which featured anatomic contouring and multiplanar fixation. Other product lines included the MaxTorque Cannulated Screw System and specialized technologies like PocketLock™ and Tribrid™, which offered surgeons multiple fixation options within a single system.

A significant milestone occurred on August 24, 2012, when the Dutch medical device company Tornier N.V. announced a definitive agreement to acquire OrthoHelix for $135 million, comprising $100 million in cash and $35 million in Tornier stock, with potential for additional milestone-based payments. The acquisition was strategic for Tornier, aiming to more than double its lower extremity revenue and expand its market presence among foot and ankle surgeons. Following the acquisition, OrthoHelix was to continue operating under its own name from its base in Medina, Ohio, retaining its employees and product brands while leveraging Tornier's international distribution channels to expand beyond its U.S.-only sales base.

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