Habakkuk manufacturer partner, Integra Lifesciences, announced a definitive agreement to divest its Extremity Orthopedics business to Smith+Nephew. Integra anticipates that the deal will close at or near the end of 2020 and not materially impact financial results for the year.
Integra’s Extremity Orthopedics business generated $90 million in 2019 and $32.7 million in 1H20 sales, but the company struggled to get it on track in recent years. Sales declined in the three consecutive years between 2017 and 2019. COVID’s cancellation of elective procedures significantly impacted the business as well, with a -26.6% decline in 1H20 compared to the prior year.
A manufacturer partner since 2014, Habakkuk has utilized Integra’s shoulder product line to help serve the greater Oklahoma City market. Habakkuk’s contract with Integra runs until Jan. 1, 2021. During Integra’s transitional period, Habakkuk will continue to offer Integra’s exceptional shoulder products until the end of 2020. Habakkuk’s mission is to prioritize our surgeons and their patients with clear communication and exceptional product and performance.