Acquisition expands foot and ankle business and adds innovative shape memory technologies

DJO, a subsidiary of Colfax Corporation (NYSE: CFX) and a leading global provider of medical technologies to get and keep people moving, today announced that it has completed the acquisition of MedShape, Inc., a privately held orthopedic medical device company founded in 2005. MedShape® provides innovative surgical solutions for foot and ankle surgeons using its patented superelastic nickel titanium (NiTiNOL) shape memory alloy and shape memory polymer technologies.

The acquired business’ portfolio includes innovative devices for fracture fixation, joint fusion and soft tissue injury repair that utilize biomaterial technologies designed to improve patient outcomes. The superelastic properties of NiTiNOL are leveraged to create devices that actively participate and respond to changes at the surgical site, such as bone resorption, maintaining compression and bony apposition throughout healing. MedShape’s DynaNail® TTC Fusion System, launched in 2011, has over 30 clinical publications and podium presentations showing decreased failure rates and improved fusion times utilizing NiTiNOL technology compared to static solutions.^1,2,3

“Based on our long-term success and deep relationships in both our Prevention & Recovery and Recon segments, we made a strategic decision to meaningfully expand into the fast-growing Foot and Ankle market. We believe our acquisitions of STAR®, Trilliant Surgical®, and now MedShape have created a strong position in the space and will create a rapid growth platform,” said Brady Shirley, CEO of DJO. “MedShape’s patented technology and growing suite of foot & ankle innovations complement our existing portfolio and strengthen our key strategic imperative of superior clinical outcomes.”

The Foot and Ankle market is expected to grow and reach $1.58B by 2025.⁴ Among the factors driving the market are a rapidly growing elderly population, increasing prevalence of diabetes and a number of sports-related injuries.⁴ The MedShape® product line opens a new market entry for a suite of surgical solutions that actively participate in the bone healing process and creates new options for self-adapting foot and ankle implants.

“As the industry leader in developing shape memory technologies and successfully applying that science to foot and ankle products, we have unbounded future potential,” said Ken Gall, Ph.D., Professor at Duke University and Co-founder of MedShape. “We are excited to continue developing and integrating this breakthrough science to expand into other areas of orthopedics leveraging DJO's market leadership, patient outcome focus and commitment to product innovation.” Dr. Gall will take on a new role at DJO and become the Chief Scientific Officer for the growing Reconstructive segment.

For more information, visit www.djoglobal.com/medshape

References:

1. Ford, Samuel E., John Y. Kwon, and J. Kent Ellington. "Tibiotalocalcaneal arthrodesis utilizing a titanium intramedullary nail with an internal pseudoelastic nitinol compression element: a retrospective case series of 33 patients." The Journal of Foot and Ankle Surgery 58.2 (2019): 266-272.
2. Steele, John R., et al. "Comparison of tibiotalocalcaneal arthrodeses using a sustained dynamic compression nail versus nondynamized nails." Foot & ankle specialist 13.3 (2020): 193-200.
3. Conklin, Mark Jay, et al. "Total ankle replacement conversion to tibiotalocalcaneal arthrodesis with bulk femoral head allograft and pseudoelastic intramedullary nail providing sustained joint compression." Foot & Ankle Orthopaedics 3.4 (2018): 2473011418804487.
4. SmartTrak® Foot & Ankle Market Overview: https://app.smarttrak.com/markets/qs/fd52946dc2bd8b02ac1002535b62cf35

About DJO®

DJO, a subsidiary of Colfax Corporation (NYSE: CFX), is a leading developer and distributor of high-quality medical devices that provide proven solutions for musculoskeletal health, joint reconstruction, vascular health, and pain management. The Company's extensive range of products and integrated technologies address the orthopedic continuum of care from performance and mobility to surgical intervention and post-operative rehabilitation; enabling people around the world to regain or maintain their natural motion. For additional information about DJO, please visit www.DJOGlobal.com.

About MedShape, Inc.

MedShape Inc. is a privately held medical device company founded in 2005 based on a portfolio of proprietary surgical solutions that use its patented adaptive shape memory healing technologies to address the increasing demand for improved joint fusion, sports medicine, and musculoskeletal trauma products. MedShape® has enjoyed long term support from Hills Capital Management, the Georgia Research Alliance (GRA), the National Science Foundation (NSF), the National Institutes of Health (NIH), and In-Q-Tel. For more information, visit: http://www.medshape.com

CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTS

This press release may contain forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning DJO's plans, objectives, expectations and intentions and other statements that are not historical or current fact. Forward-looking statements are based on DJO's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause DJO's results to differ materially from current expectations include, but are not limited to, risks related to the impact of the COVID-19 global pandemic, including actions by governments, businesses and individuals in response to the situation, such as the scope and duration of the outbreak, the nature and effectiveness of government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions, the impact on creditworthiness and financial viability of customers, and other impacts on DJO's business and ability to execute business continuity plans, and the other factors detailed in Colfax's reports filed with the U.S. Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption "Risk Factors," as well as the other risks discussed in Colfax's filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. DJO disclaims any duty to update the information herein.

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