22
SPINE
SURGEONS
Large orthopedic practices
could fetch 10x EBITDA — 4
insights into PE investment
By Eric Oliver
P
rivate equity investment in the orthopedic space is increas-
ing, and analysts think there's still a way to go, according to
Mergermarket's exploration of the topic for Forbes.
What you should know:
1. Orthopedic surgeons are seeking investors to ensure
protection from emerging reimbursement trends and in-
creasing equipment costs.
2. Private equity investors are becoming more comfortable
around reimbursement and regulatory risk because of the
opportunities afforded by the physician practice manage-
ment space. For example, orthopedic practices have sev-
eral ancillary options that can increase operating margins.
3. Mergermarket analysts predict that larger platform
groups could fetch 10 times EBITDA valuations or higher.
4. However, analysts have reservations about potential fu-
ture growth. Where dermatology and dental practices can
succeed throughout the country, orthopedic practices are
usually tied to affiliated hospitals or physician groups. n
Zimmer Biomet's
endoscopic treatment for
pediatric scoliosis gains
FDA approval
By Alan Condon
T
he Tether, Zimmer Biomet's anterior vertebral body tethering
treatment for pediatric scoliosis, received FDA approval.
Five things to know:
1. Traditional surgical treatment for scoliosis involves large incisions,
so tissue disruption and restriction of spinal motion with metal rods.
2. e Tether offers patients an option to achieve a straighter spine
without having to undergo spinal fusion.
3. e solution uses a sturdy, flexible cord to pull the outside of a sco-
liosis curve to straighten the spine, leaving the inside of the curve to
grow.
4. e Tether is placed in a minimally invasive endoscopic approach
through small incisions between the ribs.
5. e FDA and Zimmer Biomet cooperated for over five years on e
Tether and now it is available through the FDA's humanitarian device
exemption pathway. n
