OssDsign, a Swedish medtech company focused on regenerative implants for improved healing of bone defects, acquired Sirakoss, manufacturer of bone graft substitutes. The acquisition is expected to immediately provide OssDsign with a five times larger addressable market than it presently holds.
The all-cash transaction is valued at USD $11 million, excluding milestone and royalty payments.
Sirakoss has developed Osteo3 ZP Putty nanosynthetic bone graft substitute to treat skeletal defects including spine and trauma procedures. The company has been preparing for a commercial launch of Osteo3 ZP Putty since the product received FDA clearance in June 2020.
OssDsign intends to start commercial activities for Osteo3 ZP in the U.S. for spinal fusion immediately following the acquisition, and expects to see revenue from the product during 2H21 following approval processes in U.S. hospitals, where the company already is present with its existing implants for cranial reconstruction. Over time, bone graft is expected to represent a substantial portion of OssDsign’s sales.
“OssDsign’s acquisition of Sirakoss is an important step forward in establishing a strong foothold in the rapidly growing global market for bone repair solutions. The strong interest shown for the directed share issue reflects the confidence of prominent investors in our portfolio company’s ability to create substantial value for both patients and shareholders, and we are looking forward to follow and support its continued endeavors,” said Viktor Drvota, CEO of Karolinska Development, the parent company of OssDsign.