Stryker acquired OrthoSpace in an all-cash transaction for an upfront payment of US $110MM and future milestone payments of up to an additional $110MM.
OrthoSpace was founded in 2009 and is headquartered in Caesarea, Israel. The InSpace product is a biodegradable sub-acromial balloon spacer designed to treat massive irreparable rotator cuff tears. It is approved under the CE Mark and is marketed in Europe and other countries in Latin America and Asia, where it has been used to treat >20,000 patients in 30 countries.
In the U.S., InSpace is currently under clinical study and not approved for use. The 184-patient randomized, single blinded control study is comparing InSpace to conventional/partial repair to treat full thickness massive rotator cuff tears.
Past investors in OrthoSpace include Johnson & Johnson, Smith & Nephew and HealthPoint Capital.
“The acquisition of OrthoSpace is highly complementary to our existing portfolio and aligns with Stryker’s focus on investing in sports medicine,” said Andy Pierce, Stryker’s Group President, MedSurg. “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.”
By ORTHOWORLD® estimates, Stryker's sports medicine segment accounts for ~7% of its overall orthopedic revenue. For 2018, sales of $521.8MM grew 5.6% over 2017, an increase of nearly $28MM. The company expects the transaction to have an immaterial impact to net earnings in 2019.
InSpace image courtesy of OrthoSpace/LinkedIn.