RTI Surgical acquires Paradigm Spine
MARQUETTE — RTI Surgical Inc., a global surgical implant company, and Paradigm Spine LLC, a leader in motion preservation and non-fusion spinal implant technology, recently announced that they have entered into a definitive agreement whereby RTI will acquire all outstanding equity interest of Paradigm Spine in a cash and stock transaction valued at up to $300 million, consisting of $150 million at closing plus potential future milestone payments.
Under the terms of the agreement, RTI will pay $100 million in cash and roughly 10.7 million shares of RTI common stock at closing, a press release from RTI states.
The shares of RTI stock to be issued represent about $50 million of value, officials noted. The transaction is expected to close in the first quarter of 2019.
Established in 2005, Paradigm Spine’s primary product is the coflex Interlaminar Stabilization device, a differentiated and minimally invasive motion-preserving stabilization implant for the treatment of moderate to severe lumbar spinal stenosis in conjunction with decompression. Paradigm Spine is based in New York with international operations in Wurmlingen, Germany.
“With coflex, the Paradigm Spine team has created a differentiated implant that has a demonstrated track record of improving patient outcomes and addresses a critical and growing need in the spine surgery space,” Camille Farhat, president and CEO of RTI, said in the press release.
Farhat said coflex has received premarket approval by the Food and Drug Administration, and is “an established treatment that we believe is poised for accelerated and sustainable long-term growth given its clinical efficacy and ongoing progress toward insurance coverage.”
The transaction is subject to the satisfaction of customary closing conditions and applicable regulatory approvals, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act as well as approval by RTI shareholders and Paradigm Spine equity holders, the release states.
“We have spent the last several years building coflex into a therapy of choice for orthopedic spine surgeons and neurosurgeons. We believe the treatment is on the verge of accelerating growth as coverage from private payors and patient access begin to expand,” Marc Viscogliosi, co-founder, chairman and CEO of Paradigm Spine, said in the release. “We are confident RTI is the ideal partner to help achieve our considerable growth potential and address a vital patient need in the U.S. market.”