The Competition and Markets Authority (CMA) is concerned that,
should the proposed £4.2 billion purchase by Stryker Corporation
(Stryker) of Wright Medical Group N.V. (Wright) go ahead, it
would have a negative impact on vulnerable patients in the UK who
need ankle replacements.
Stryker and Wright both manufacture a range of orthopaedic
products for patients requiring assistance with their feet,
ankles and hands. The total ankle replacement prosthetics
produced by Stryker and Wright are predominantly used in elderly
orthopaedic patients suffering from arthritis.
Following its initial Phase 1 investigation, the CMA found that
the proposed merger would result in the merged entity having a
share of over 90% in the total ankle replacement prostheses
market in the UK. Should the deal go ahead as planned, the CMA is
concerned that Stryker would not face enough competition from
other suppliers, leading to higher prices or less choice for
hospitals and their patients.
Joel Bamford, CMA Senior Director, said:
The CMA is concerned that this merger and the resulting
reduction in competition could lead to worse outcomes for
hospitals and patients. The companies are the two major
producers of vital medical products for vulnerable people
suffering from serious degenerative conditions such as
arthritis.
Healthy competition in the medical technology market is central
to continued innovation and improvements in patient treatments.
Stryker and Wright now have until 7 July 2020 to address the
CMA’s concerns through the offer of undertakings in lieu of a
Phase 2 reference. If they are unable to address the CMA’s
concerns, the deal will be referred for an in-depth Phase 2
investigation.
For more information, visit the Stryker/Wright Medical
merger inquiry web page.
