Ex-NuVasive CEO Lucier to head new M&A firm

Ex-NuVasive CEO Gregory Lucier will lead new M&A-focused company Corza Health.

Recently departed NuVasive (NSDQ:NUVA) CEO Gregory Lucier will lead a new company formed to acquire medtech and life sciences firms and assets.

Lucier, 54, is partnering with Chicago-based private equity firm GTCR to form the new company, Corza Health, in San Diego. GTCR holds stakes in Regatta Medical, which owns laser micro manufacturer Resonetics and Sotera Health along with life sciences, technology, and financial and business services companies.

Get the full story on our sister site, Medical Design & Outsourcing.

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Brainlab acquires Medineering’s robotics platform

BrainlabBrainlab said today that it acquired Medineering and its line of robot-assisted surgery devices for an undisclosed amount.

Brainlab, which earlier this month dealt its orthopedic joint reconstruction assets to Smith & Nephew (NYSE:SNN), is already an investor and markets the Medineering robot-assisted surgical arm under the Cirq brand. The Munich-based company said it plans to fold the Medineering tech into its open-architecture surgery offering.

“Medineering introduced a fresh new approach to surgical robotics when we entered into our partnership less than three years ago,” pesident & CEO Stefan Vilsmeier said in prepared remarks. “Today, we are shifting gears and accelerating development with additional resources to address a broader clinical market.”

“Becoming part of Brainlab means scalability for our technology and improved market access,” added Medineering co-founder & CEO Stephan Nowatschin. “Combining our open platform with the software ecosystem from Brainlab will enable more efficient development of very competitive clinical solutions.”

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Report: Smiths Medical parent co to announce separation plans Friday

Smiths Medical

Smith Medical‘s parent company Smiths Group (LON:SMIN) is expected to disclose how it plans to separate its medical division from the rest of the organization on Friday, according to a report from the Minneapolis Star Tribune posted yesterday.

The conglomerate has been seeking buyers for its medical division over the past few years, and has also mentioned the possibility of an initial public offering.

Last September, Smiths Medical ended possible merger plans with ICU Medical (NSDQ:ICUI) in a deal reportedly worth approximately $4 billion. The companies had been in discussions since last May.

Listed amongst other potential buyers over the past year are Baxter (NYSE:BAX), Teleflex (NYSE:TFX) and B. Braun, though no discussions have been officially disclosed.

A report last November alleged that the industrial tech-focused Smiths Group was looking to spin-off the healthcare business and that CEO Andy Reynolds has considered a number of different options for the medical division, including sale or separate listing.

London-based Smiths Group is planning to disclose its plans for separation during an earnings call on Friday, according to the Star Tribune.

“Ultimately, it was a decision that has been made by the board of directors and by the executive committee of the group to really ensure that we are getting the strength of both companies — getting the strength of the med-device industry for a very specific medical device player, Smiths Medical, and you have the ability for … the other businesses in Smiths Group to really strongly relate to the industries in which they are involved,” Smiths Medical marketing executive Carl Stamp told the paper.

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Novartis’ Alcon picks up PowerVision for $285m

Alcon, PowerVision

Novartis (NYSE:NVS) subsidiary Alcon said today that it acquired intraocular lens developer PowerVision for $285 million.

PowerVision is developing fluid-based intraocular lens implants that use the eye’s natural accommodating response to transport fluid in the implanted lens, Fort Worth, Texas-based Alcon said.

The fluid-based lens creates a continuously variable monofocal lens using the natural contractions of the eye’s muscles, Alcon said, allowing a patient to actively focus on objects in a style similar to a young eye’s crystalline lens.

“We’re thrilled to officially join Alcon and its pioneering history of launching new innovation in the field of ophthalmology. We look forward to bringing this innovative IOL technology to eye care providers and customers in the years ahead,” PowerVision prez & CEO Barry Cheskin said in a prepared statement.

Alcon said that the commercial availability of the newly acquired IOL devices will be “determined following significant additional development and clinical trials of the intraocular lens.

The deal includes additional payments tied to regulatory and commercial milestones slated to begin 2023, Alcon said.

“As the industry leader in cataract surgery, we’re eager to accelerate development of this potentially breakthrough accommodating lens technology. By treating cataracts and restoring natural, continuous range of vision, this intraocular lens may be the preferred IOL for cataract surgery patients who desire spectacle independence,” Alcon global business and innovation prez Michael Onuscheck said in a press release.

Last December, Alcon said that it acquired Tear Film Innovations for an undisclosed amount.

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LA cannabis outfit inks reverse merger with Imaging3

Imaging3Imaging3 said yesterday that it inked a reverse merger deal through which the company will be acquired by a privately held, but unnamed, Los Angeles-based cannabis company.

Burbank, Calif.-based Imaging3 said that its buyer holds licenses to manufacture and distribute cannabis products in California, and plans to open an ethanol-based extraction laboratory at its facilities.

Through the deal, the unnamed buyer will own 80% of the outstanding common shares of the company while current shareholder will own 20% of the outstanding shares.

As part of the deal, the buyer will be required to obtain a “commitment for a bridge loan” of not less than approximately $1.3 million, to be funded upon the closure of the deal, as well as an equity infusion of $10 million subsequent to the closing of the acquisition.

The buyer will gain rights to the company’s intellectual property, including its Dominion imaging technology, which will be assigned and transferred to a new, private closely-held company that will be owned by the post-acquisition Imaging3, according to a press release.

“We have continued our progress towards our targeted closure of approximately $3M of funding for our Dominion development program which we anticipate to close in the near future. A critical step in this process is the resolution of certain outstanding obligations owed by the company. We believe that the proposed acquisition announced today will help us to more easily resolve these obligations, thereby allowing the Dominion to devote a substantially larger percentage of the anticipated $3M funding to future endeavors as opposed to existing obligations. Conducting the Dominion enterprise in a new private entity will also eliminate the not insignificant costs of being a public entity,” CEO John Hollister said in a prepared statement. “As many of us observe on a daily basis, the healthcare benefits and investment opportunities in CBD and other cannabis-derived products has been the focus of significant attention to investors of every genre. We believe that the acquirer has wisely positioned itself to be a responsible leader in this emerging field, focusing on regulatory compliance and product quality as the drivers behind a well-planned rollup and integration of multiple facets of the cannabis business. The acquisition of our fully-reporting and SEC current public company improves their access to the public equity markets and should facilitate their ability to rapidly attract either debt or equity financing and maximize value appreciation and liquidity for their investors and the current IGNG public shareholder. For the above reasons, IGNG’s officers and directors sincerely believe that the acquisition is in the best interest of all parties: Imaging3’s current shareholders, the myriad financial and health care beneficiaries of the roll out of our breakthrough Dominion imaging technology, and the acquirer.”

“The company’s management and board have diligently prepared for completion of our planned financing of the Dominion enterprise, and the execution of our vision for an important new value proposition addressing many under-served markets for 3D X-ray imaging technology. The explosion of investor interest in the cannabis space presented us with an unusual opportunity to leverage the asset of our fully-reporting, SEC current public company structure through the serendipitous confluence of these events which we believe strengthen our likelihood to achieve our vision for the Dominion technology, while at the same offering our current IGNG shareholders a valuable opportunity for rapid appreciation of their investment in the post-Acquisition cannabis-focused company,” company chair Jeffrey Peterson said in a press release.

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Stryker pays up to $220m for OrthoSpace

OrthospaceStryker (NYSE:SYK) said today that it put $220 million on the table for OrthoSpace and its InSpace rotator cuff repair device.

Stryker said it paid $110 million in up-front cash and agreed to another $110 million in potential milestones for the Caesarea, Israel-based company.

“The acquisition of OrthoSpace is highly complementary to our existing portfolio and aligns with Stryker’s focus on investing in sports medicine,” medsurg president Andy Pierce said in prepared remarks. “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.”

Kalamazoo, Mich.-based Stryker said the deal isn’t expected to affect its earnings this year.

Johnson & Johnson (NYSE:JNJ) and Smith & Nephew (NYSE:SNN) are both investors in OrthoSpace.

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Exactech acquires XpandOrtho

Exactech, XpandOrtho

Exactech (NSDQ:EXAC) said today that it acquired knee replacement surgery instrument maker XpandOrtho for an undisclosed amount.

Gainesville, Fla.-based Exactech said that it plans to incorporate XpandOrtho’s soft tissue balancing technology into its ExactechGPS computer-assisted surgery system designed to support shoulder and knee replacements.

“This allows our technology, which has been in development for more than seven years, to be brought to market for the benefit of surgeons and their patients,” founder Dr. Clifford Colwell said in a prepared statement.

XpandOrtho won FDA clearance in 2017 for an electronic soft-tissue balancing instrument intended for total knee arthroplasty. The tool uses multiple sensors within a knee joint to guide soft tissue balancing, and a novel pneumatic-based bellows system which wirelessly communicates with a display to provide gap balancing feedback throughout the knee’s range of motion, the companies said.

“The acquisition of XpandOrtho supports Exactech’s growth strategy and commitment to improving surgeon experience and patient outcomes. Their innovative ligament balancing technology provides a strong framework for integration into our ExactechGPS system to further advance our award-winning Truliant total knee system. We look forward to collaborating with XpandOrtho founders Cliff Colwell and Darryl D’Lima on continued development of advanced knee replacement technology,” Exactech CEO David Petty said in a press release.

Last March, Exactech said that it won FDA clearance for its Equinoxe stemless shoulder prosthesis designed to be compatible for use with the Equinoxe shoulder system.

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Hill-Rom to acquire Voalte for $195m

Hill-Rom, Voalte

Hill-Rom Holdings (NYSE:HRC) said yesterday that it inked a deal to acquire mobile healthcare communications developer Voalte in a deal worth up to $195 million.

Through the deal, Chicago-based Hill-Rom will pay a cash consideration of $180 million and up to an additional $15 million in milestone-based payments.

Hill-Rom said that the acquisition of Sarasota, Fla.-based Voalte, which was founded in 2008 and recently reported yearly revenue of nearly $40 million, will advance its digital and mobile communications platform and capabilities.

Voalte currently serves more than 200 healthcare customers with more than 84,000 devices on its mobile platform, connecting approximately 220,000 caregivers and providing voice, alarm and text communications.

“Our scalable enterprise communication platform is proving to be a critical tool in the digital transformation of healthcare systems, and we look forward to further developing our platform in alignment with Hill-Rom’s vision of advancing connected care. Bringing our companies together will allow us to offer customers a single, integrated solution – delivering actionable data from smart hospital beds, nurse call and patient monitoring technology right to a caregiver’s mobile device,” Voalte CEO Trey Lauderdale said in a press release.

Hill-Rom said that it expects the deal to close during its fiscal third quarter of this year, and that it expects the acquisition to be modestly dilutive to its adjusted earnings per diluted share for its fiscal year 2019 and increasingly accretive in its fiscal year 2020 and beyond. The company added that it does not expect the deal to have a material impact on its fiscal 2019 adjusted earnings guidance.

“Interoperability and connectivity have become critical elements in providing quality healthcare, reducing length of stay and driving efficiencies across the healthcare continuum. This transaction strategically fits with our vision of advancing connected care to improve workflow and real-time actionable insights at the point of care, while driving accelerated growth and delivering an attractive margin profile. We look forward to welcoming and working closely with the talented Voalte team, and benefiting from Voalte’s technology, capabilities and substantial installed customer base to enhance outcomes for patients and their caregivers,” Hill-Rom prez & CEO John Groetelaars said in a prepared statement.

In January, Hill-Rom reported fiscal second-quarter results that beat the consensus forecast on Wall Street.

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Smith & Nephew puts up $660m for Osiris Therapeutics

Smith & Nephew to acquires Osiris TherapeuticsSmith & Nephew (NYSE:SNN) said today that it agreed to put $660 milli0on on the table to acquire Osiris Therapeutics (NSDQ:OSIR) and its regenerative medicine portfolio.

The British orthopedics and wound care giant said the $19-per-share deal is a 37% premium on the 90-day volume-weighted average for OSIR shares. It’s structured as a two-step tender offer, Smith & Nephew said, with Osiris chairman & co-founder Peter Friedli agreeing to commit his 30% stake. The acquisition is slated to close during the second quarter, with the 360 people employed by Osiris joining S&N, that company said.

“Greater presence in the fast-growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business as well as provide longer term innovations in additional channels and indications. We sought out a fast growing portfolio with strong clinical evidence addressing critical needs in the marketplace,” CEO Namal Nawana said in prepared remarks.

“I am immensely proud of the business we have built from our research into advanced regenerative technologies. Smith & Nephew is the best new owner to take these products forward, widening access to more customers and restoring quality of life for more patients,” Friedli added.

Osiris put up sales of $102 million for the nine months ended Sept. 30, 2018 and $36.5 million during last year’s third quarter. Fourth-quarter and full-year results are on tap for March 15, Smith & Nephew said.

The cash-and-debt transaction is expected to add to S&N’s adjusted earnings per share starting next year, with return on invested capital topping the cost of capital three years after closing, the company said.

OSIR shares closed up 0.9% at $18.88 each yesterday. SNN shares, which closed up 0.8% at $38.79, were up 0.7% to $39.04 apiece just before the open today.

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RTI Surgical closes $300m Paradigm Spine buy

RTI Surgical acquires Paradigm Spine

RTI Surgical (NSDQ:RTIX) said last week that it closed the $300 million acquisition of Paradigm Spine and its Coflex lumbar stenosis device.

The cash-and-stock deal, originally announced last November, called for RTI to pay $100 million in cash and more than 10.7 million shares of its own stock worth $50 million, with the $150 million balance pegged to unspecified milestones in cash and stock.

New York City-based Paradigm’s Coflex device won pre-market approval from the FDA in 2012.

“The acquisition of Paradigm aligns with RTI’s growth strategy focused on investing in differentiated products and building scale within our spine business,” RTI president & CEO Camille Farhat said in prepared remarks. “The addition of Coflex allows RTI to provide surgeons who treat patients with moderate to severe LSS a PMA-approved device supported by more than 12 years of clinical data and with expanding coverage from payors. With RTI’s demand generation expertise, scale and infrastructure and the experience of key members of the legacy Paradigm Spine team joining RTI, we are well-positioned to grow coflex as the treatment of choice and standard of care for appropriate LSS patients.”

Piper Jaffray advised Alachua, Fla.-based RTI on the deal, with Sidley Austin and Holland & Knight as counsel for  the transaction and financing, respectively. Dorsey & Whitney was legal counsel to Paradigm Spine.

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