Wright Medical — Merger or Acquisition (August 2018)
11 slides from Wright Medical's merger presentation, Aug 27, 2018
Slide 1: Wright + Cartiva Transaction Overview
Wright + Cartiva Transaction Overview August 27, 2018 Exhibit 99.2
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation includes forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “could,” “may,” “wil
Slide 3: Non-GAAP Financial Measures
To supplement the company’s consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles, the company uses certain non-GAAP financial measures in this presentation. The company’s non-GAAP financial measures include net sales, excluding the impact of for
Slide 4: Cartiva Highlights
Only PMA FDA-approved cartilage-like polymer Treats most common arthritic condition of the foot (great toe osteoarthritis), with ~120K surgeries annually in U.S. Since approval, implant has been used in over 10,000 procedures in the United States Compelling, level 1 clinical data supports product’s
Slide 5: About Cartiva
About Cartiva Private, orthopedic medical device company focused on treatment of osteoarthritis of the extremities Lead product, a synthetic cartilage implant for osteoarthritis at the base of the great toe, received U.S. Premarket Approval (PMA) in July 2016 for initial indication. Additional regul
Slide 6: Cartiva Strategic Rationale
Cartiva Strategic Rationale Enhances/Accelerates our Revenue Growth Accelerates our Product Platform Strategy Extends our # 1 Foot & Ankle Position Fits Perfectly with our Salesforce Achieves our Financial Objectives Expected Cartiva 2019 revenues of ~$47mm Expected to accelerate Wright’s pro forma
Slide 7: Cartiva Product Overview
Cartiva’s MOTION clinical study was a multi-center randomized controlled trial that provided the basis of FDA PMA approval in 2016 for the treatment of great toe arthritis 5.8-year post-approval outcomes (below) were largely in line with clinical study results 97% median reduction in pain 176% media
Slide 8: Significant Total Addressable Market Opportunity
Significant Total Addressable Market Opportunity Market Conversion Opportunity (From MTP fusions to Cartiva) ~51,500 procedures Market Expansion Opportunity (From cheilectomies to Cartiva) ~52,500 procedures ~$400 Million U.S. Market Opportunity ~120,000 procedures annually Premium Average Selling P
Slide 9: Cartiva Transaction Summary
Cartiva Transaction Summary Purchase price $435 million cash Key financial metrics Expected revenues of ~$47 million and adjusted EBITDA of ~$20 million in 2019 Expected to improve Wright’s pro forma net sales growth rate and adjusted EBITDA margins by ~1% in 2019 ~90+% gross margins expected to be
Slide 10: Raised 2018 Net Sales Guidance
Guidance range communicated on 8/27/2018. The fact that we include these projections in this presentation should not be taken to mean that these amounts continue to be our projections as of any subsequent date. Adj. EBITDA from continuing operations, which is measured by adding back to net income/lo
Slide 11: In Summary: Cartiva Will Accelerate Wright's Growth Opportunities
IN SUMMARY: Cartiva Will Accelerate Wright’s Growth Opportunities Expected to immediately add base of fast-growing, gross margin and EBITDA margin accretive revenue Only PMA FDA-approved cartilage-like polymer – extends Wright’s technology leadership position in fast-growing and underpenetrated foot
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