Medical technology firm Stryker has acquired Israel-based firm OrthoSpace for a total equity value of around $220m in an all cash transaction.
The deal included an upfront payment of $110m, as well as future milestone payments of up to an additional $110m.
Established in 2009 and based in Caesarea, OrthoSpace is engaged in the development and commercialization of simple-to-implant and biodegradable balloon systems for the orthopedic market.
The firm’s product portfolio is said to offer an advanced differentiated technology to treat massive irreparable rotator cuff tears.
OrthoSpace’s InSpace is a biodegradable sub-acromial spacer developed to realign the natural biomechanics of the shoulder.
InSpace, which is based on an implantable biodegradable balloon system, will be implanted in a minimally invasive procedure on an outpatient basis.
The balloon will create a space between the two bones whose friction causes the most pain, and there will be no friction between the bones when the spacer is placed, enabling to reduce the pain.
In the US, the InSpace is presently under clinical study and not yet secured approval for use.
Stryker’s group president MedSurg said: “The acquisition of OrthoSpace is highly complementary to our existing portfolio and aligns with Stryker’s focus on investing in sports medicine.
“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.”
In October 2018, Stryker acquired privately-held HyperBranch Medical Technology for a total equity value of around $220m in an all cash transaction.
HyperBranch is engaged in the development of medical devices based on its advanced polymers and cross-linked hydrogels. The firm produces Adherus autospray dural sealant product, which is claimed to be one of only two FDA-approved dural sealants on the market.
The patent protected sealant formulation, which is combined with a differentiated delivery system, will offer clinically safe and effective dural closure.
Stryker provided advanced products and services in orthopedics, medical and surgical,, as well as neurotechnology and spine segments.