Becker's Spine Review

35 DEVICES & IMPLANTS NuVasive's US Procedure Volumes Stay Slow in 2017, International Revenue Up: 5 Things to Know By Laura Dyrda N uVasive expects 2017 revenue to hit $1.03 billion, in line with pre- viously reported guidance with the lingering impact of Hurricane Maria factored in. Here are five things to know: 1. NuVasive expects a 7 percent growth in 2017 full-year revenue, hitting $1.03 bil- lion. The company expects fourth quarter revenue to be reported as $272 million, as U.S. procedure volumes remained "soft" in the aftermath of the 2017 hurricanes. 2. NuVasive expects the 2018 financial outlook to include the impact of its Safe- Passage acquisition, made in the fourth quarter of 2017. The acquisition is ex- pected to bolster the NuVasive Clinical Services business and elevate the compa- ny as the largest provider of outsourced intraoperative neuromonitoring services. 3. Based on the expected impact of the U.S. tax reform in 2018, NuVasive ex- pects to realize substantial tax savings with the corporate tax rate reduced from 35 percent to 21 percent. Prior to the re- form, NuVasive's tax rate was expected to be around 33 percent on a non-GAAP basis in 2018. 4. NuVasive launched several new tech- nologies in 2017 and accelerated growth across the board, with a 20 percent sales increase in the international markets for the fifth sequential quarter. n Titan Spine Reports Rapid Growth, Raises $7.5M in Series D Funding: 6 Things to Know By Shayna Korol T itan Spine, based in Mequon, Wis., raised another $7.5 million for its series D funding round, which is now at $15 million, according to a December U.S. Securities and Exchange Commission report, BizTimes.com details. Here is what you should know: 1. The funding came entirely from Texas private equity firm Southlake Equity Group, according to Southlake's managing partner, Tom Keene. 2. Southlake initially invested $7.5 million in June 2016 and deployed another $7.5 mil- lion in a second installment in February 2017. The SEC filing was not filed until December. 3. The investment gave Southlake a minority ownership stake in Titan Spine. Titan Spine CEO Peter Ullrich, MD, and others constitute the majority ownership group. 4. The funds are being used for general corporate purposes, including infrastructure and inventory, according to Titan Spine President Kevin Gemas. 5. Titan Spine has been growing at over 40 percent per year for over 10 years. It now has about 110 employees. 6. Titan Spine also raised an indefinite series B equity fund for early investors that launched in June 2012 and totaled $202,262, and a series B round launched in Au- gust 2016 now totals $1.8 million. n RTI Surgical Acquires Zyga Technology: 4 Insights By Mackenzie Garrity R TI Surgical acquired minimal- ly invasive treatment developer Zyga Technology. Details of the acquisition were not disclosed. Here are four insights: 1. RTI Surgical plans to fund the ac- quisition through cash and borrowing under its existing credit. Closing will occur following Delaware Depart- ment of State's filing. 2. Zyga Technology employs roughly 30 individuals and brings in nearly $4 million in annual revenue. 3. Zyga Technology is a developer of spine-focused medical devices used in minimally invasive spine surgery. e SImmetry Sacroiliac Joint Fusion System is the company's signature de- vice. 4. RTI Surgical develops biologic, metal and synthetic implants. e company's implants are used in sports medicine, general surgery, spine, or- thopedic, trauma and cardiothoracic procedures. "Acquiring Zyga Technology further advances our strategic transforma- tion focused on reducing complexity, driving operational excellence and accelerating growth," said Camille Farhat, RTI Surgical president and CEO. "We are increasing our focus on both internal development and exter- nal investment, and acquiring Zyga Technology's innovative minimally invasive treatment both accentuates our robust spine portfolio and opens significant opportunities to accelerate growth." n

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