Issue link: https://beckershealthcare.uberflip.com/i/1043345
31 ORTHOPEDICS Stryker acquires K2M for $1.4B, a 27% premium: 5 things to know By Laura Dyrda S tryker inked a deal to acquire mini- mally invasive spine device compa- ny K2M for approximately $1.4 billion. "is acquisition underscores our commit- ment to the spinal market, which is the larg- est segment of orthopedics with significant unmet needs," said Stryker Chairman and CEO Kevin Lobo. "We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets." Here are five things to know: 1. e $1.4 billion price tag is a 27 percent premium over K2M's average closing price during the past 90 days. Stryker will acquire the company and all issued and outstanding shares of common stock in a cash transac- tion totaling $27.50 per share. e transac- tion isn't expected to have an impact on the adjusted net earnings per diluted share for the full year. 2. Aer the transaction is complete, K2M Chairman, CEO and President Eric Major is expected to become president of the Stryker Spine division. K2M will be a wholly owned subsidiary of Stryker. e current president of Stryker's spine division, Bradley Paddock, is expected to assist with the transition and support integration efforts. 3. e transaction is expected to close late in the fourth quarter of 2018, pending the ap- proval of K2M stockholders. e acquisition must also meet customary closing conditions and regulatory approval. 4. e board of directors for both companies have approved this transaction, which isn't subject to financing conditions. K2M has average sales approaching $300 million, and its portfolio will help Stryker grow in the $10 billion spine market. Over the past five years, K2M's portfolio and sales force have driven double-digit compounded annual growth rate. 5. Piper Jaffray & Co. was the acting finan- cial advisor for the transaction and Simp- son Thacher & Bartlett is the acting legal advisor to K2M. For Stryker, Citigroup Global Markets was the financial advisor and Skadden, Arps, Slate, Meagher & Flom was the outside legal counsel connected with this transaction. "Joining Stryker will be a very exciting next chapter for our global team and surgeon customers around the world," said Mr. Major. n K2M has average sales approaching $300 million, and its portfolio will help Stryker California medical board claims orthopedic surgeon continued seeing patients with suspended license By Mackenzie Garrity A n amended accusation from the Medical Board of California alleges John P.S. Janda, MD, contin- ued to see patients despite having a suspended license, according to The Fresno Bee. Here's what you need to know: 1. The medical board claims Dr. Janda wrote prescriptions and performed examinations after the board suspended his license. The orthopedic surgeon met with the board in June 2017, when he acknowledged his license was suspended. 2. The board alleges Dr. Janda saw a patient in August 2017 to treat the patient's back and knee pain. In Septem- ber 2017, a patient allegedly visited Dr. Janda to go over blood test results. 3. Dr. Janda is accused of back-dating prescriptions so they appeared to be written before his license was sus- pended. 4. The June 2017 interim suspension review noted Dr. Janda had a history of syncopal events while performing surgery. Dr. Janda performed his last surgery in Novem- ber 2014. 5. The Medical Board of California previously revoked Dr. Janda's license in 2015 for gross negligence and repeated negligent acts in his care. However, Dr. Janda's revocation was stayed, and he was put on a three-year probation. 6. Now, the board is seeking to remove Dr. Janda's proba- tion. The board claims the orthopedic surgeon did not complete a clinical training program in a timely fashion and failed to complete a neuropsychological fitness evaluation. 7. If Dr. Janda's probation is revoked, his license will also be revoked. n