OrthoSpace Ltd. announced it has been acquired by Stryker in an all cash transaction. Terms of the transaction included an upfront payment of $110 million and an agreement to future milestone payments of up to $110 million, according to a press release from OrthoSpace.
“The acquisition of OrthoSpace is highly complementary to our existing portfolio and aligns with Stryker’s focus on investing in sports medicine,” Andy Pierce, Stryker’s group president of MedSurg, said in a press release from 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.”
OrthoSpace’s InSpace product provides a differentiated technology for the treatment of massive irreparable rotator cuff tears. According to a press release from OrthoSpace, InSpace is a biodegradable subacromial spacer designed to realign the natural biomechanics of the shoulder. InSpace is under clinical study and is not approved for use in the United States.
“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,” Itay Barnea, CEO of OrthoSpace, said in the release.
According to the Stryker release, the transaction is expected to have an immaterial impact on its net earnings in 2019.
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