Wright Medical Group, Inc. expands relationship with Kinetic Concepts, Inc.

Wright Medical Group, Inc. announced the extension of its supply agreement with LifeCell Corporation, a business unit of Kinetic Concepts, Inc. for the supply of GRAFTJACKET Regenerative Tissue Matrix through December 2018 for orthopedic markets. Wright also announced an agreement to license its GRAFTJACKET brand to KCI for exclusive use in wound markets. Consideration to be paid by KCI consists primarily of $8.5 million payable over the next 12 months as well as payments based on future sales of licensed products, according to a press release.

Wright launched the GRAFTJACKET Matrix, provided through a supply and development relationship with LifeCell, into orthopedic applications in 2002 and has developed the product into the market leading orthopedic soft-tissue reinforcement materia, the company noted. Wright will maintain focus on its core orthopedic markets selling the product for orthopedic applications through its focused foot and ankle sales channel and large joint-reconstructive sales force.

Wright has also invested heavily in demonstrating the clinical efficacy of GRAFTJACKET Matrix in the treatment of chronic wounds. Ultimately the value of this asset will be maximized by leveraging the global sales force of KCI’s Active Healing Solutions business unit, which has a dedicated infrastructure and existing relationships with defined surgical specialties, the Wright press release went on to note.

Gary D. Henley, Wright’s president and chief executive officer, commented, “We are excited about the opportunity to further expand our relationship with KCI. These agreements ensure that we continue to have access to the premier soft-tissue matrix for our core orthopedic markets. Additionally, KCI’s leadership position in the wound market makes it the perfect partner for maximizing the value of the GRAFTJACKET brand within the wound space.”