The year kicked off with a splashy merger between spine medtech companies, and another key acquisition is on the horizon.
In January, Orthofix and SeaSpine's merger, accounted in October, was completed. In February, Globus Medical announced plans to acquire NuVasive with the deal expected to close by the middle of 2023.
Here's what to know about the deals:
Orthofix and SeaSpine
1. Orthofix CEO Jon Serbousek said on an Oct. 11 investor call that the merger could put them in "amongst the top tier" of spine and orthopedic devicemakers. In its first three years, the merged entity expects to hit $1 billion in revenue, he said.
2. SeaSpine is known for its radiation-free Flash imaging system. Orthofix's M6-C artificial cervical disc replacement device will add to SeaSpine's NorthStar posterior cervical fixation system, SeaSpine CEO Keith Valentine said on the investor call.
3. The merged company has ambitions to form one of the industry's broadest biologics portfolio, Orthofix said in an Oct. 11 news release. The combined technologies include CervicalStim bone graft therapy device, the Virtuos Lyograft and the OsteoStrand Plus and OsteoSurge demineralized bone matrix products.
4. One of Orthofix's key assets is its international infrastructure, Mr. Valentine said. Although SeaSpine conducts business primarily in the U.S., Orthofix sees 20 percent of its revenue from international channels.
5. The company will be based in Lewisville, Texas, with additional offices in Carlsbad, Calif. and Verona, Italy, Mr. Serbousek said.
Globus Medical and NuVasive
1. Globus Medical's all-stock purchase values NuVasive at $3.1 billion.
2. Globus Medical is known for its ExcelsiusGPS navigation robot and Excelsius3D imaging system. In November, the company's CEO, Dan Scavilla, said Globus Medical plans to grow the platform and lean into artificial intelligence.
3. NuVasive has Pulse, an integrated spine system that was launched in 2021. NuVasive CEO Chris Barry said in May 2022 that the platform surpassed 500 cases and that robotics will be a "key application" in the future.
4. The combined company will have a presence in more than 50 countries with more than 5,000 employees.
5. Mr. Scavilla will be CEO of the combined company, and the company's board chair will oversee an 11-member board with three NuVasive representatives.