Centinel Spine has entered into an agreement to purchase DePuy Synthes’ worldwide prodisc assets. The acquisition is expected to close in mid-4Q17. Terms were not disclosed.
Upon completion, Centinel Spine will add cervical and lumbar artificial disc systems prodisc-C, prodisc-L, prodisc-C Vivo, prodisc-C Nova, prodisc-O and Discover to its portfolio, which presently includes MIDLINE and STALIF interbody devices as well as ALTOS® posterior cervical stabilization, the ACTILIF™ Cervical Cage, etc.
The acquisition also serves as a catalyst for Centinel’s ex-U.S. expansion. The company has focused on the U.S. and Australian markets, and plans to use the prodisc portfolio to launch into more ex-U.S. markets, says John Viscogliosi, Chairman & Chief Executive Officer of Centinel Spine and a Principal at the private equity and venture capital firm Viscogliosi Bros., LLC.
Additionally, Viscogliosi told ORTHOWORLD, prodisc-C and prodisc-L are the only assets in the purchase with premarket approval in the U.S. Centinel intends to initiate U.S. clinical studies to secure approval for other products in the portfolio.
The Viscogliosi Bros. have a history with the technology, having purchased prodisc-L from Aesculap in 1999 which was then spun into the standalone company, Spine Solutions. Spine Solutions then commercialized prodisc-C and commenced U.S. clinical trials. Synthes purchased Spine Solutions in 2Q03 for $350 million.
Viscogliosi says that re-acquiring the technology was attractive because of prodisc’s nearly 20 years of clinical history plus the strength of the artificial disc market, which he estimates will grow at 16% to 20% worldwide for the next five to ten years.
The acquisition will leave DePuy Synthes with only the INMOTION lumbar disc. DePuy’s spine division posted flat revenue for 2014 and a loss in 2015 and 2016, according to ORTHOWORLD estimates. Leadership had noted gaps in its portfolio as one reason for a weaker performance. In 2017, DePuy purchased Interventional Spine assets and Sentio’s nerve localization technology.
prodisc-c image courtesy of DePuy Synthes