Stryker acquires medical device company
Stryker has acquired a company that will complement its orthopedic and surgical divisions.
The Kalamazoo-based maker of medical devices and equipment has completed the acquisition of Caesarea, Israel-based OrthoSpace Ltd., according to Stryker today.
The company was acquired in an all-cash transaction for an upfront payment of $110 million and future milestone payments of up to an additional $110 million.
The transaction is expected to have an immaterial impact on net earnings in 2019.
OrthoSpace’s sole finished product is InSpace, “a highly differentiated technology for the treatment of massive, irreparable rotator cuff tears.”
“The acquisition of OrthoSpace is highly complementary to our existing portfolio and aligns with Stryker’s focus on investing in sports medicine,” said Andy Pierce, group president of MedSurg, Stryker.
“We are excited about the momentum OrthoSpace has in key global markets and the additional surgical option this technology provides our customers to address a complex pathology.”
InSpace is a biodegradable sub-acromial spacer, which is designed to re-align the natural biomechanics of the shoulder. The technology has a long clinical history with more than 20,000 patients treated across 30 countries.
In the U.S., InSpace is under clinical study and not approved by the Food and Drug Administration for use.
Stryker (NYSE: SYK) offers a diverse array of medical products and services in the orthopedics, surgical, neurotechnology and spinal markets that “help improve patient and hospital outcomes.”
Its products are used in more than 100 countries around the world.
The company reported 2018 revenue of about $13.6 billion.
Founded in 2009, OrthoSpace develops and commercializes “simple-to-implant,” biodegradable balloon systems for the orthopedic market.
The company aims to create solutions that “reduce pain and increase patients’ range of motion, while preserving patient bone and joint structures.”