Medical grade silicon nitride manufacturer Amedica has completed the sale of its spine business to CTL Medical for a total cash consideration of up to $10m.
Amedica and CTL Medical signed the asset purchase agreement last month.
With the closing of the transaction, CTL Medical has now become the exclusive owner of Amedica’s portfolio of metal and silicon nitride spine products.
At present, the products are sold under the brand names of Taurus, Preference, and Valeo, with access to future silicon nitride spine technologies.
In September, it was stated that CTL Medical will acquire the entire existing inventory of spine products, including US and OUS regulatory clearances and the associated intellectual property from Amedica.
Amedica will retain the manufacturing, R&D and all intellectual property related to the core biomaterial technology of silicon nitride.
The Salt Lake, Utah-based company will serve as CTL’s exclusive original equipment manufacturer (OEM) provider of silicon nitride products.
Amedica board chairman Sonny Bal said: “We will fully support CTL spine sales in terms of clinical and basic science, surgeon education, and any other necessary sales support. Most importantly, as a debt-free company, Amedica can now focus on revenue opportunities outside of spine where our R&D program is particularly strong, such as in the dental and arthroplasty markets.
“In our opinion, this is the leanest, most efficient, and overall best position that Amedica has ever been in as a company, from a cash position or otherwise, with multiple strategic options going forward.”
Amedica said it is now free from the considerable costs and complexity associated with retail spine sales and this allows it to focus on core biomaterials and OEM business instead.
CTL Medical president and CEO Daniel Chon said: “The closing of the acquisition now gives us the green light to unleash the talents of our engineers to drive innovation by applying the attributes of silicon nitride across our entire product portfolio. The responses from our global partners, surgeons and distributors were extremely positive and equally encouraging.
“We believe that as our two organizations come together, each with distinct strengths, as one pulls from the front and the other pushes from the back, a new era, movement, and momentum in our industry will be seen and felt.”