By Joe Carlson Star Tribune-June 8, 2016
Medtronic PLC plans to jump into the market for dependable, lower-priced knee and hip implants next year, after acquiring a Twin Cities start-up company that specializes in selling devices to hospitals in government cost-cutting programs.
During a presentation to investors Monday, Medtronic executives revealed that they had acquired Minneapolis-based Responsive Orthopedics in a private deal with undisclosed terms. The deal is part of Medtronic’s overarching strategy to capitalize on the national push for greater “value” in health care purchasing.
“It’s an area of obvious interest for us,” Medtronic Chief Executive Omar Ishrak told investors at a presentation in New York City on Monday. A Medtronic spokeswoman said the Minnesota-run med-tech company has been a minority investor in Responsive Orthopedics since 2014.
Led by industry veteran Doug Kohrs, Responsive Orthopedics was founded with an unusual vision in the med-tech world — to sell lower-cost artificial knees and hips with streamlined size offerings and instrument sets. A more typical marketing strategy for the major orthopedic implant companies would be to innovate more features and models that can drive premium pricing.
