RTI Surgical recently announced an agreement to purchase Paradigm Spine, manufacturers of motion preservation and non-fusion spinal implant technologies. The deal is expected to total $300 million in cash and stock.
Paradigm Spine is likely best known for the coflex Interlaminar Stabilization device, a posterior lumbar motion preservation solution for patients with moderate to severe spinal stenosis. Earlier this year, Paradigm Spine earned FDA approval for an associated disposable spinal instrument set designed with the needs of outpatient facilities in mind.
“With coflex, the Paradigm Spine team has created a differentiated implant that has a demonstrated track record of improving patient outcomes and addresses a critical and growing need in the spine surgery space,” Camille Farhat, president and CEO of RTI, says in a statement announcing the deal. “Coflex is FDA PMA approved and an established treatment that we believe is poised for accelerated and sustainable long-term growth given its clinical efficacy and ongoing progress toward insurance coverage.”
According to the statement, leaders at Paradigm Spine view the acquisition by RTI Surgical as the ideal way to accelerate gains already seen with their product line, especially as spinal surgery shifts toward outpatient treatment options.
Following the typical approvals and clearance of regulatory hurdles, the acquisition is expected to be complete in the first quarter of 2019.
“We look forward to working with the Paradigm Spine team to complete this compelling addition to the RTI Surgical family,” Farhat adds.