Embla Medical (EMBLA) Status Update summary

Strategic rationale and acquisition fit

• The acquisition supports a five-year strategy to expand reach to patients with chronic mobility impairments and aligns with Embla's Growth'27 strategy, expanding its portfolio and market reach.

• The deal offers strong strategic and cultural fit, with complementary product portfolios and commercial synergies, leveraging Össur's global infrastructure.

• The neuro-orthotics market is maturing but remains significantly underserved, lagging prosthetics by over a decade in innovation and awareness, with substantial growth potential.

Product innovation and differentiation

• Fior & Gentz specializes in custom-made orthoses, including advanced ankle and knee joints like the NEURO HITRONIC bionic knee joint, offering microprocessor-controlled support.

• The company features a unique 360-degree orthotic concept and an open-source configurator tool, enabling over 500,000 possible configurations tailored to patient data.

• Annual product launches focus on bionic and highly innovative devices, maintaining a strong pipeline of new offerings.

• Orthoses are highly customizable, adapting to individual patient needs and providing enhanced safety and mobility.

Market opportunity and growth strategy

• Chronic neurological disorders like stroke, MS, CP, and spinal cord injuries represent a large, untapped market with low orthotic penetration (<5% in developed markets, 15-20% for stroke in Germany).

• Growth is driven by education, market access, and increasing fitting rates, leveraging existing infrastructure to enter new markets such as the U.S., South Europe, and Asia.

• Scalability is supported by a component-based model and external suppliers, allowing flexible production and expansion.

• The renewal cycle and increasing awareness are expected to drive higher adoption of advanced, higher-value neuro orthotics.