Tis the season for M&A in the orthopedics market. This time out Medtronic is acquiring Titan Spine for an undisclosed sum.
Mequon, WI-based Titan Spine markets a full line of Endoskeleton interbody devices featuring its textured surface in the U.S., Europe, and Australia through its sales force and a network of independent distributors.
Dublin-based Medtronic said interbody implants are spacers that can be inserted between the vertebrae during spinal fusion surgery to help relieve pressure on nerves and hold the vertebrae in place while fusion occurs. Implant material and shape is thought to play a role in the bone growth process during fusions, and today there is a growing demand from surgeons for titanium interbody devices.
"We've built the broadest Spine portfolio - implants, instruments, enabling technologies, and biologics - in order to provide complete procedural solutions for surgeons' biggest challenges," Jacob Paul, senior vice president and president of the Spine division, which is part of the Restorative Therapies Group at Medtronic, said in a release. "Titan Spine has pioneered the spine implant surface technology category over the past several years. We feel that surface-enhanced titanium implants combined with our comprehensive biologics portfolio can have a positive impact on patient outcomes in spinal procedures."
Medtronic said the deal is set to close during its first fiscal quarter ending July 26, subject to the satisfaction of customary closing conditions including receipt of regulatory clearances.
The transaction is expected to be immaterial to Medtronic's fiscal 2020 adjusted earnings per share and is expected to meet Medtronic's long-term financial metrics for acquisitions.
The deal comes hot on the heels of Boston Scientific making a play to acquire Vertiflex for $465 million. Carlsbad, CA-based Vertiflex sells the Superion Indirect Decompression System, a device designed to improve physical function and reduce pain in patients with lumbar spinal stenosis (LSS).
The procedure, which is primarily performed by doctors who treat chronic pain patients with therapies including spinal cord stimulation and radiofrequency ablation, is expected to hit $60 million in sales this year. FDA approved the device in 2015 for patients with moderate degenerative LSS.