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34 DEVICES & IMPLANTS Orthofix acquires Spinal Kinetics for about $105M: 6 things to know By Laura Dyrda O rthofix acquired Spinal Kinetics, a privately held company focused on artificial discs, for up to $105 million. "is acquisition is very well aligned with our value creation strategy of accelerating topline growth by investing in faster growing market segments in our core business," said Ortho- fix President and CEO Brad Mason. "In ad- dition, we expect this news will energize our sales force and be attractive to potential new sales talent." Here are six things to know. 1. Orthofix will acquire the company, which develops and manufactures the M6 artificial discs, for $45 million in cash closing consid- erations as well as up to $60 million contin- gent on milestone payments. 2. e milestone payments hinge on M6-C achieving FDA approval and the company hitting training 12-month sales targets of $30 million to $50 million. 3. e artificial discs, M6-C and M6-L, are designed for patients with degenerative disc disease. e discs mimic the anatomic struc- tures of a natural disc and have an artificial visco-elastic nucleus and fiber annulus. M6 discs have six degrees of motion, which is similar to a natural disc. 4. Orthofix estimates the artificial disc market exceeded $325 million worldwide and $200 million in the U.S. in 2017 and expects dou- ble-digit growth in the future. e company also anticipates momentum from the acqui- sition will generate pull-through revenue of Orthofix's other products and position the company to gain additional market share in the U.S. spine hardware market. 5. e acquisition is expected to add revenue to Orthofix in 2018 and increase its organic growth rate in 2019 and beyond. Orthofix also predicts the deal will be slightly accretive to the company's non-GAAP diluted earn- ings per share and adjusted EBITDA for 12 months aer approval in the U.S. 6. Canaccord Genuity is the acting financial advisor to Spinal Kinetics for the transaction. n Top 3 global surgical robotics companies for the spine market By Mackenzie Garrity A ccording to Market Research Trade, these are the top three companies in the spine market's global surgical robots sector. 1. Mazor Robotics: The medical device company reported full-year 2017 revenue of $64.9 million, including an investment from Medtron- ic for Mazor X systems. Medtronic has now invested around $72 mil- lion in Mazor; the companies will develop future projects together. In 2017, Mazor received purchase orders for 73 robotic systems, 64 of which were Mazor X systems for Medtronic. Over the past 18 months, Medtronic has invested in Mazor and Mazor X technology. 2. Intuitive Surgical: Intuitive Surgical developed the da Vinci Surgical System, the first robotic surgical system on the market. In 2017, Intuitive Surgical reported the da Vinci system was used in more than 650,000 procedures. Additionally, the company installed 3,597 systems at hos- pitals around the world last year. Intuitive Surgical saw $3.12 billion in full-year 2017 revenues. Its instruments and accessories brought in 52.3 percent of the revenue followed by systems, 29.1 percent, and services, 18.6 percent. 3. Medtech: Founded in 2002, Medtech is focused on designing and developing innovative robotic systems to assist surgeons. In 2007, the company developed Rosa, an innovative device devoted to improving neurosurgery. The company has since expanded Rosa to include spine surgery. Zimmer Biomet acquired Medtech SA in July 2016. n Life Spine highlights advancements to its micro-invasive solutions — 4 highlights By Megan Wood L ife Spine unveiled clinical advance- ments to its procedural solutions with the Centerline Cortical Screw System and the Prolift Expandable Spacer System. Here are four highlights. 1. Prolift is designed for in-situ disc height restoration for micro-invasive posterior lum- bar interbody fusion, transforaminal lumbar interbody fusion and oblique approaches. 2. The Prolift features Osseo-Loc surface technology. 3. A 4.75 mm diameter rod system, Center- line is designed for cortical and pedicular fix- ation. Combined with the Calypso Retractor System, Centerline is intended to reduce the lateral retraction requirements, which mini- mizes the risk of denervation of the neuro- vascular attachments of the multifidus. 4. Life Spine develops patented micro-inva- sive expandable technologies. n