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Spine Industry News

Spine Industry: Growth Through Acquisitions! 7 Relevant Acquisitions in the last 12 months

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During the last year, the spinal market has seen more than 7 acquisitions for many different reasons.

  • Buy Sales or Market Share: Although the global spinal implants market is still growing at an expected rate of 6.6% CAGR  2022,  acquisitions are an importante alternative way for Spinal Companies to achieve more than single digit organic spine growth rates. Some spine implant companies sales growth over the years has come from acquisitions.If you can’t beat your Competitors, buy them!
  • Acquire new technology or products that complete the product portfolio:  To a great extent, the pathway to success for emerging growth companies is paved with innovation, and with a wider product offering to reach a much larger audience.
  • Achieve Distribution: Many companies, and even important ones, have a strong position in US but very weak in Asia or Europe. A good example is Globus acquiring international business from Alphatec Spine and thus opening the Japanese and European market for them.

Which were the 7 Relevant Acquisitions in the last 12 months?

  1. Stryker Corporation Acquired VEXIM:VEXIM, a medical device company specializing in the minimally invasive treatment of vertebral fractures listed on Euronext Growth.VEXIM has designed and developed the SpineJack®, a unique implant capable of repairing a fractured vertebra and restoring the balance of the spinal column.Terms of the Agreement: Stryker Corporation (NYSE:SYK) has indirectly acquired 4,115,151 VEXIM shares, representing 50.7% of the share capital and 50.3% of the voting rights of the Company for a cash price of EUR 20.00 per share, and 170,745 listed warrants (“BSAAR”), representing 37.1% of outstanding BSAARs for a cash price of EUR 3.91 per BSAAR.
  2. NuVasive Acquired Vertera Spine:Vertera Spine, a privately-held medical device company developing and commercializing highly innovative interbody implants for spinal fusion using patented porous polyetheretherketone (PEEK) technology.
  3. Amendia Acquired Spinal Elements: According to their management: “The acquisition of Spinal Elements would bring  a wealth of talent and a portfolio of exciting new products to the Amendia organization,” and “The combination of these two companies solidifies our position as one of the fastest growing and most comprehensive spine companies in the marketplace”
  4. Orthofix Acquired Spinal Kinetics:The Spinal Kinetics M6™ artificial discs would strengthen Orthofix’s product portfolio by filling a strategic gap in the Spine Fixation product line. Terms of the agreement include $45 million in cash closing consideration plus up to $60 million in contingent milestone payments related to U.S. Food and Drug Administration approval of the M6-C cervical disc and the achievement of trailing twelve-month sales targets of $30 million and $50 million.
  5. RTI Surgical Acquired Zyga Technology:Zyga Technology is a leading spine-focused medical device company that develops and produces innovative minimally invasive devices to treat underserved conditions of the lumbar spine. Zyga Technology’s primary product is the SImmetry® Sacroiliac Joint Fusion System.Terms of the deal were not disclosed.
  6. Alphatec Spine Acquired SafeOp Surgical: SafeOp is a privately-held provider of advanced neuromonitoring technology designed to prevent the intraoperative risk of nerve injury with automated assessment that obviates the need for a technician or other neuromonitoring professional in most surgeries.Alphatec will pay $15 million in up-front cash, a $3 million convertible note, and the issuance of 3.3 million shares of common stock and warrants to purchase 2.2 million shares of common stock at an exercise price of $3.50 per share. SafeOp will be eligible to receive an additional 1.3 million shares of common stock, subject to the achievement of performance milestones.
  7. Globus Medical Acquired robotic surgical KB Medical:The addition of KB Medical would enable Globus Medical to accelerate, enhance and expand their product portfolio in imaging, navigation and robotics. According to Dave Demski (Globus Medical CEO), “KB Medical’s experienced team of technology development professionals, its strong IP portfolio, and shared philosophy for robotic solutions in medicine strengthen Globus Medical’s position in this strategic area,”.

To learn more about these and former ACQUISITIONS, please visit:https://thespinemarketgroup.com/category/acquisitions/

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