Surgalign Files for Bankruptcy & Is Set to Sell AssetsSurgalign Files for Bankruptcy & Is Set to Sell Assets

The move from the Deerfield, IL-based company comes just a few months after Pear Therapeutics filed for Chapter 11.

Omar Ford

June 21, 2023

1 Min Read
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Image Credit: Kameleon007 via iStock/Getty Images

Another medtech company is filing for bankruptcy and auctioning off assets.

Surgalign, a surgical device maker, filed for bankruptcy with estimated assets and liabilities in the range of $50 million to $100 million in the Bankruptcy Court for the Southern District of Texas.

The Deerfield, IL-based company said it would sell substantially its hardware and biomaterials assets to Xtant Medical Holdings for $5 million. The move comes just a few months after the company reduced its workforce by about 20%.

As part of the Chapter 11 proceedings, Surgalign also filed a motion seeking authorization to pursue an auction and sale process under section 363 of the U.S. Bankruptcy Code pursuant to which Xtant will be designated as the stalking horse bidder. The proposed sale process also encompasses the company’s other assets that are not the subject of the Asset Purchase Agreement, according to a release from Surgalign.

The turbulent economy has been difficult for many medtech companies. There have been numerous layoffs in the space and some companies have just outright tanked.

In April, Pear Therapeutics, a digital health company focused on prescription digital therapeutics announced filing for Chapter 11 protection.

The company was sold off into four parts. Nox Health closed on the acquisition of Somryst, Pear’s digital insomnia treatment earlier this month.

About the Author

Omar Ford

Omar Ford is a veteran reporter in the field of medical technology and healthcare journalism. As Editor-in-Chief of MD+DI (Medical Device and Diagnostics Industry), a leading publication in the industry, Ford has established himself as an authoritative voice and a trusted source of information.

Ford, who has a bachelor's degree in print journalism from the University of South Carolina, has dedicated his career to reporting on the latest advancements and trends in the medical device and diagnostic sector.

During his tenure at MD+DI, Ford has covered a wide range of topics, including emerging medical technologies, regulatory developments, market trends, and the rise of artificial intelligence. He has interviewed influential leaders and key opinion leaders in the field, providing readers with valuable perspectives and expert analysis.

 

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