Zimmer Biomet's stock falls after pricing secondary offering

Hip replacement device.
BSIP | Getty Images
Hip replacement device.

Zimmer Biomet, a medical device maker based in Indiana, announced Tuesday it was initially pricing its secondary offering of 11.1 million common shares at $115.85.

Shares of the company dropped about 1.5 percent to about $116 a share.

The offering is being underwritten by Goldman Sachs and JPMorgan Chase and is expected to close June 16.

The company recently announced it was purchasing rival medical device maker LDR Holding for $1 billion, paying a 64 percent premium on the company's closing stock price at the time of the deal. The acquisition of LDR is expected to close in the third quarter. Since January, Zimmer Biomet's stock is up more than 13 percent.

Zimmer Biomet makes reconstructive surgical devices such as hip replacement products.

ZBH in 2016