NuVasive announced that it has acquired Simplify Medical for $150 million in cash along with future milestones related to regulatory approval and sales. Simplify Medical, a privately held company, developed the Simplify® Cervical Artificial Disc (Simplify Disc) for cervical total disc replacement.
Simplify Disc is designed for MRI compatibility, physiologic motion and anatomical height-matching.
The device was granted premarket approval from FDA for 1-level cervical indications in late 2020. A premarket approval submission for a 2-level Investigational Device Exemption was completed shortly thereafter.
The acquisition rounds out NuVasive’s C360 suite of procedurally integrated cervical spine products. Company CEO Chris Barry said, “The acquisition of Simplify Medical advances our previously communicated long-term growth strategy by both expanding, and further distinguishing, our portfolio with industry-leading innovation. Combining the Simplify Disc with NuVasive's C360 portfolio will enable us to provide surgeons with world-class cervical technology, regardless of their preferred procedural approach.”
NuVasive expects the acquisition to accelerate net sales growth in 2022. NuVasive’s procedural selling approach has served the company well and NuVasive will get a bump in 2H21 with the release of its Pulse system. The company still has a long road to enter the robotics market, however, with a first in human timeline of 2022 for Pulse robotics.
In the interim, the company will need to continue fending off aggressive competitors of all sizes that are claiming market share. Globus vastly outperformed the market at the end of 2020, growing +10% in 2H20. We estimate that ATEC grew nearly +30% last year. Medtronic’s newfound focus on market share also promises to drive stiffer competition in the segment.