CTL Medical, a company which focuses on the spine implant and instrument market, has agreed to acquire all of Amedica’s commercial spine business for total consideration of about $10m.
With the acquisition, CTL Medical will become the exclusive owner of Amedica’s portfolio of metal and silicon nitride spine products, with access to future silicon nitride spine technologies.
The transaction is expected to be closed in the third quarter of this year, subject to customary due diligence and closing conditions.
As part of the deal, CTL Medical will acquire the entire existing inventory of spine products, including US and OUS regulatory clearances and associated intellectual property from Amedica.
The deal includes Amedica’s products sold under the brand names Taurus, Preference, and Valeo.
The manufacturing, R&D and all intellectual property of core biomaterial technology of silicon nitride will be held by Amedica in Salt Lake City.
Amedica will also act as CTL’s exclusive original equipment manufacturer (OEM) provider of silicon nitride products.
Amedica board of directors chairman Sonny Bal said: “The addition of a highly-differentiated silicon nitride and metal product line to CTL Medical’s complete offering of spine surgery implants and instruments will benefit both companies, as well as our surgeon customers.
“Amedica’s products and scientific data have established that silicon nitride resists bacteria, promotes bone healing, and has superior clinical outcomes. CTL Medical is best positioned to profitably leverage these advantages in the retail spine market.”
Amedica stated that divesting sales organization can bring down costs, and enable it to focus on additional OEM revenue opportunities outside of spine such as dental and arthroplasty markets.
The company will also support CTL Medical’s spine sales by providing surgeon education, peer-forums, publications and research related to silicon nitride.
After the transaction is closed, CTL Medical will rebrand itself as CTL Amedica.
CTL Medical president and CEO Daniel Chon said: “Adding the credibility of Amedica’s products and technology, to which over 70 peer-reviewed publications already attest, to our product portfolio will generate new opportunities both in the US and overseas.
“Our team was deeply impressed at how far Amedica has taken its technology, in terms of breadth of application, as well as the quality, discipline, and depth of Amedica’s scientific inquiry. Onward, our goal is to apply the attributes of silicon nitride across our entire product line. CTL Medical will be the only company worldwide to offer such technology, further strengthening our position as an industry leader.”