Zimmer’s offer for Tutogen is “inadequate”

Tutogen Medical has described Zimmer’s statement of interest in wholly acquiring the company as “inadequate”.

Zimmer already owns approximately a third of Tutogen’s stock and last week indicated orally that it was willing to offer between $5 and $6 per share for the company’s shares.

Tutogen manufactures sterile biological implant products made from human and animal tissue. Its products are already distributed by Zimmer’s spine and dental divisions, as well as Mentor, and Zimmer may see the acquisition of Tutogen as the next logical step, already being owning a significant interest in the Florida-based company.

However, the Tutogen’s board deemed Zimmer’s offer to be insufficient and “not in the best interests of all the shareholders”.

Guy Mayer, chief executive of Tutogen Medical, was keen to stress that the two companies were still very much allies.

He said: “Zimmer Holdings is a major Tutogen shareholder as well as an important business partner.”

“We value their unwavering support as we progress on executing our strategic business plan with the objective of enhancing value for all of our loyal shareholders,” he concluded.

Recently, Zimmer applied for trials for new living tissue graft technology researched in conjunction with ISTO Technologies, not dissimilar to the kind developed by Tutogen.

Ray Elliot, president and chief executive officer of Zimmer, remarked: “Zimmer has made biologics the centrepiece of our innovative investment strategy…”

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