Stryker acquired OrthoSpace, an Israel-based company focused on technology to treat irreparable rotator cuff tears.
Four key notes:
1. Stryker agreed to pay $110 million cash upfront for OrthoSpace and pay an additional $110 million if the company meets future milestones.
2. The company expects this acquisition to have an immaterial impact on 2019 net earnings.
3. OrthoSpace's InSpace is a biodegradable sub-acromial spacer designed to realign the natural biomechanics of the shoulder. More than 20,000 patients have been treated with the technology.
4. InSpace is under clinical study in the U.S. and hasn't received regulatory approval for use.
5. This acquisition will complement Stryker's portfolio of orthopedic products and aligns with the company's mission to invest 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," said Andy Pierce, Stryker's group president of Medsurg.