Orthofix puts $105m on the table for Spinal Kinetics

Orthofix (NSDQ:OFIX) said yesterday that put up to $105 million on the table to acquire Spinal Kinetics and its M6 cervical disc implant. Lewisville, Texas-based Orthofix said the deal calls for $45 million in up-front cash, plus another $65 million in milestones pegged to FDA approval of the M6 cervical device and trailing twelve-month sales targets of $30 million and $50 million. It’s expected to close during the second quarter, the company said. Sunnyvale, Calif.-based Spinal Kinetics makes the M6 disc for treating degenerative disc disease in both the cervical and lumbar spine. The discs are designed to mimic natural disc anatomy with an artificial visco-elastic nucleus and fibrous annulus. The devices have CE Mark approval in the European Union since 2006; Spinal Kinetics has a bid in for pre-market approval from the FDA for the M6 cervical implant. “The Spinal Kinetics M6 artificial discs will further strengthen Orthofix’s product portfolio by filling a strategic gap in our spine fixation product line. This technology is a significant advance in mimicking the natural motion of the spine, which we believe will be very beneficial to patients and well received by our surgeon customers,” president & CEO Brad Mason said in prepared remarks. “This acquisition is very well aligned with our value creation strategy of accelerating topline growth by investing in faster growing market segments in our core businesses. In addition, we expect this...
Source: Mass Device - Category: Medical Devices Authors: Tags: Mergers & Acquisitions Orthopedics Spinal Wall Street Beat Orthofix Spinal Kinetics Source Type: news