More jobs likely as Corin signs major US distribution deal
17 August 2005
Corin, the locally-based manufacturer of innovative joint replacement devices, has signed a major marketing and distribution agreement in the USA for its Cormet™ hip resurfacing system – a deal which, subject to FDA approval, is likely to see the company recruiting additional staff at its Cirencester headquarters.
The agreement is with Stryker Corporation, the world’s largest supplier of hip replacement products, and means that Stryker will exclusively supply Corin’s hip resurfacing device in the USA for at least the next ten years.
“Stryker’s hip market leadership and longstanding commitment to clinical excellence makes it an ideal US partner for Corin,” comments Ian Paling, Chief Executive Officer at Corin Group. “We believe that our partnership with Stryker will bring the benefits of the Cormet™ technology to surgeons and patients in the USA.”
Hip resurfacing is aimed at restoring a high quality of life for younger, more active patients suffering from arthritis of the hip. The innovative bearing technology wears much less than conventional hip replacements, lasting much longer before it needs replacing. It is also more stable, allowing patients to return to high activity lifestyles which were simply not possible with conventional hip replacements.
Although Corin’s hip resurfacing products have been in clinical use in the UK since 1991, they are not generally available yet in the USA, but are expected to be approved by US regulatory bodies in the near future. As the technique becomes as widely accepted in the USA as it is in the UK and Europe, the industry expects hip resurfacing could take up to 10-15% of the US hip replacement market by 2010. In 2004, approximately 240,000 total hip replacements were carried out in the USA.
“This is the biggest deal in the history of Corin” comments Finance Director Simon Hartley. “With the right distribution arrangements in the USA, we can maximise the great opportunity for these fantastic products. The USA represents more than 50% of the global orthopaedic market, so the potential for this partnership is obvious. Stryker’s aim is to ensure that our Cormet™ device is the clear market leader in hip resurfacing in the USA”.
Initial reaction to the deal from major shareholders and financial experts has been very positive, and the agreement with Stryker represents excellent news for the long-term future of Corin. The announcement means that Corin will have to significantly increase its manufacturing output for these key products - and the good news is that all manufacturing will stay in Cirencester. Extra equipment is being ordered by the company, who will be recruiting additional shop floor staff in the near future.
All of this means that not only has the company secured its independence for the foreseeable future, but also the security of almost 200 jobs at its Cirencester headquarters, along with significant growth for some years to come.