DePuy Synthes Signs Definitive Agreement to Acquire Assets of Medical Enterprises Distribution, LLC to Strengthen its Portfolio and Amplify the Surgeon's Capabilities Via Automation

Automated Tool, Already Used in Hip Replacement Surgery, Will Also Be Developed for Other Orthopaedic Surgical Procedures as Part of Overarching Digital Surgery Platform

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DePuy Synthes

May 14, 2018, 05:15 ET

WARSAW, Ind., May 14, 2018 /PRNewswire/ -- Consistent with its strategy to transform orthopaedic surgery by building a differentiated and comprehensive digital surgery platform, DePuy Synthes Products, Inc., part of the Johnson & Johnson Medical Devices Companies*, announced today that it has signed a definitive agreement to acquire the assets of Medical Enterprises Distribution, LLC, a privately held developer of surgical impactor technology, including the automated ME1000™ Surgical Impactor for use in hip replacement. The transaction is expected to close in the second quarter of 2018. The closing is subject to antitrust clearance and other customary closing conditions. Financial terms of the acquisition are not being disclosed.

The ME1000 is a battery-powered device that automates bone preparation, implant assembly and positioning in Total Hip Arthroplasty (THA). It is designed to replace the handheld mallet used in the procedure, leading to more consistent clinical outcomes while also helping to reduce surgeon fatigue as well as the potential for work-related injuries that can arise from mallet use.

DePuy Synthes' focus is to provide a total solution for surgeons and patients throughout the episode of care. The ME1000 can be used with a variety of surgical approaches, including the anterior approach, for which DePuy Synthes has developed implants -- such as the ACTIS Total Hip System -- to accommodate surgeon preference and expertise. In addition, and as part of its leadership in the anterior approach, DePuy Synthes has an exclusive marketing agreement with JointPoint, Inc. to co-market a hip navigation system that allows for digital templating and precise analysis of implant selection and positioning during THA. JointPoint is compatible with the ME1000.

The company plans to develop and broaden the surgical impactor technology for a range of orthopaedic surgery procedures.

"The role that automation and digital technology are playing in orthopaedics, including joint replacement surgery, is tremendous, and our goal is to be at the forefront of providing surgeons with innovative and differentiated solutions that help increase efficiency as well as generate more predictable and reproducible patient outcomes," said Ciro Rӧmer, Company Group Chairman of DePuy Synthes. "The acquisition of assets of Medical Enterprises Distribution is a key example of going beyond the implant to provide complete solutions to achieve better outcomes."

About the Johnson & Johnson Medical Devices Companies
The Johnson & Johnson Medical Devices Companies have been working to make surgery better for more than a century. With substantial breadth and depth in surgical and orthopedic technologies and interventional solutions, we aspire to improve and enhance medical care for people worldwide. Together, we are working to shape the future of health through differentiated products and services.

About DePuy Synthes
DePuy Synthes, part of the Johnson & Johnson Medical Devices Companies, provides one of the most comprehensive orthopaedics portfolios in the world. DePuy Synthes solutions, in specialties including joint reconstruction, trauma, craniomaxillofacial, spinal surgery and sports medicine, are designed to advance patient care while delivering clinical and economic value to health care systems worldwide. For more information, visit www.depuysynthes.com.

Cautions Concerning Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding the ME1000 Impactor. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of DePuy Synthes, any of the other Johnson & Johnson Medical Devices Companies and/or Johnson & Johnson. Risks and uncertainties include, but are not limited to: uncertainty of commercial success; challenges to patents; competition, including technological advances, new products and patents attained by competitors; manufacturing difficulties and delays; product efficacy or safety concerns resulting in product recalls or regulatory action; changes to applicable laws and regulations, including global health care reforms; changes in behavior and spending patterns of purchasers of health care products and services; and trends toward health care cost containment. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and in the company's subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Neither DePuy Synthes, the Johnson & Johnson Medical Devices Companies nor Johnson & Johnson undertakes to update

*The Johnson & Johnson Medical Devices Companies comprise the surgery, orthopaedics, and interventional solutions businesses within Johnson & Johnson's Medical Devices segment.

The third-party trademarks used herein are the trademarks of their respective owners.

SOURCE DePuy Synthes