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RTI Surgical Acquiring Paradigm Spine

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RTI Surgical entered into a definitive agreement to acquire Paradigm Spine in a cash and stock transaction valued at up to US $300MM, comprising an initial $150MM plus future milestone payments. The transaction is slated to close in 1Q19.

Paradigm Spine specializes in motion preservation and non-fusion spinal devices, including the DSS® Stabilization and coflex-F® Interlaminar Stabilization systems, and its primary product is the coflex® Interlaminar Stabilization® device, which was granted FDA Premarket Approval for minimally invasive treatment of severe lumbar spinal stenosis after decompression.

The move supports RTI's growth acceleration strategy for spine, which includes investment in differentiated products while building scale, per CEO Camille Farhat. For 2017, RTI posted spine revenue of $77.5MM, an increase of 4.9% vs. 2016.

RTI's spine portfolio includes metal and synthetic implants and instruments as well as biologics to treat degeneration, deformity and trauma. RTI entered the spine hardware segment in 2013 with its purchase of Pioneer Surgical, and in 2018, RTI acquired Zyga Technology, developer of the SImmetry® Sacroiliac Joint Fusion system.

Sources: RTI Surgical, Inc.; ORTHOWORLD Inc.