Mako Strikes Acquisition Deal With Pipeline Biomedical

Even while Stryker wraps up its acquisition deal with Mako Surgical Corp., Mako has entered into an agreement to buy Pipeline Biomedical Holdings Inc., a Cedar Knolls, N.J.-based company that develops medical technology in the medical implants, operating room equipment, surgical instruments and diagnostics segments.

The addition of Pipeline to Mako’s portfolio will further bolster Stryker’s toolkit when its 1.65 billion acquisition of Mako is complete.

Pipeline has partnered with Mako since 2010, developing advanced technology for Mako’s Rio robotic-arm interactive orthopedic system including the Mako-branded Restoris PST cup and stem hip implant system.

The Mako-Pipeline deal is valued at $2.5 million, and is expected to close by Oct. 4.

In a research note on the deal, Leerink Swann analyst Richard Newitter said the acquisition might help explain Mako’s premium price, which was the cause of some consternation when Stryker announced the buyout last week.

“We believe (Pipeline’s) expertise in implant design and coatings could potentially be leveraged across a larger portfolio once under the Stryker umbrella, either as incremental improvements on Stryker’s existing orthorecon devices, or as platforms upon which the company designs implants for new joints (e.g., total knees, shoulders, etc),” Newitter wrote. “Pipeline assets were likely factored into the purchase price at least to some extent.”