Xtant Medical has acquired the Coflex and Cofix product lines from Surgalign for a total consideration of US$17 million.
Coflex is an interlaminar stabilisation device used after an open decompression that can be performed in various settings, offering a non-fusion treatment option for lumbar spinal stenosis (LSS) patients.
According to a press release, the Coflex device is the only US Food and Drug Administration (FDA) PMA-approved implant for the treatment of LSS, has been implanted in more than 200,000 patients in over 60 countries, is clinically validated with more than 90 peer reviewed publications and has established ambulatory surgery centre (ASC) reimbursement. Cofix is a supplemental fixation device, which is a minimally invasive system intended for use on all levels of the lumbar spine.
Sean Browne, president and CEO of Xtant Medical, said: “We are thrilled to acquire the Coflex and Cofix product lines, which will help accelerate our top-line growth and position Xtant to achieve critical mass. Coupled with our less invasive Axle interspinous device and Silex SI fusion product lines, Coflex augments our offering in the fast-growing segments of ASC and outpatient procedures.
“Aligning with our key growth pillars, this acquisition expands our footprint by adding new distributors and a significant number of trained surgeons to the company’s network. We expect these products to add approximately US$14 million in annual revenue and attractive margins to enable Xtant to achieve profitability in the near future.”
Terry Rich, president and chief executive officer of Surgalign, added: “We believe that Coflex and Cofix are great products for patients and with Xtant, we have found the right partner that will continue the legacy and drive value for all customers. This transaction provides us with non-dilutive capital which will be used to advance our leading platform of artificial intelligence products across the entire continuum of care.
“Moving forward, we are focused on commercialising our HOLO Portal surgical guidance system, our soon to be launched HOLO AI Insights for research-use, and further developing our HOLO AI platform, while driving innovation in our remaining product lines to improve patient outcomes.”