Mazor Robotics (MZOR) entered into strategic agreements with Medtronic (MDT). The first is a 2-stage commercial agreement for co-promotion, co-development and potential global distribution of certain Mazor products. The second agreement relates to an equity investment by MDT.
The commercial agreement starts with a U.S.-based co-promotion phase. If both organizations achieve respective milestones by the end of 2017, they then enter stage 2, in which MDT will assume exclusive global sales and distribution rights for future MZOR spine systems and applications.
Stage 2 includes annual quotas with a cumulative potential of hundreds of next-generation systems over a 4-year period. MDT has placed a commitment to purchase 15 future MZOR systems during 2016. The agreement also stipulates that MZOR will be sole strategic partner to MDT for development and commercialization of robotic-based spine systems and applications; co-development activities are already underway.
The second agreement provides for a three-step equity investment in MZOR, which remains an independent company and will continue to sell and support the Renaissance System through its own sales and distribution partners. Current and co-developed MZOR systems will maintain universal implant compatibility.
Source: Mazor Robotics Ltd.