UK med-tech company Stryker (NYSE:SYK) announced today that it has completed the acquisition of Israeli orthopedic device company OrthoSpace Ltd. for an immediate payment of $110 million and future milestone payments of up to an additional $110 million.
Based in Caesarea, OrthoSpace develops and commercializes simple-to-implant, biodegradable balloon systems for the orthopaedic market. The company aims to create effective solutions for orthopaedics that reduce pain and increase patients’ range of motion while preserving patient bone and joint structures.
OrthoSpace's main product InSpace is a minimally invasive plastic cushion device for treating wounds and serious inflammation of the shoulder as an alternative to surgery. The device, which is designed for patients with rotator cuff injury, reduces shoulder pain and improves range of motion by realigning the natural biomechanics of the shoulder.
OrthoSpace CEO Itay Barnea said, "With 20,000 treated patients world-wide, InSpace addresses severe rotator cuff tears for patients who have few other options. We are so pleased to be joining Stryker as we start this next phase of our growth in bringing InSpace to patients in need in additional countries, and I am thankful for the contributions of the OrthoSpace team and shareholders in getting us to this point."
Stryker Group president MedSurg Andy Pierce 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.”
Founded in 2009 in the Xenia technological incubator, the company has raised $30 million to date. The Innova Health fund holds a 75% stake in OrthoSpace, while other investors include Triventures, which led the company's A round, and Johnson & Johnson's JJDC.
Published by Globes, Israel business news - en.globes.co.il - on March 14, 2019
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