The acquisition expands Xtant’s product portfolio with the FDA PMA-approved intralaminar stabilisation device Coflex along with a supplemental minimally invasive fixation device Cofix
Medical technology company Xtant Medical has acquired the Coflex and Cofix product lines from US-based Surgalign for $17m.
Coflex is an interlaminar stabilisation device that is used after an open decompression. It can be performed in multiple settings as a non-fusion treatment option for lumbar spinal stenosis (LSS) patients.
The Coflex device is claimed as the only implant cleared by the US Food and Drug Administration (FDA) under premarket approval (PMA) for the treatment of LSS.
Xtant said that the device has been implanted in over 200,000 patients in more than 60 countries. It is also clinically validated with over 90 peer-reviewed publications and has established Ambulatory Surgery Center (ASC) reimbursement.
Cofix is said to be a supplemental minimally invasive fixation device for use on all levels of the lumbar spine.
The acquisition expands Xtant’s product portfolio of orthobiologics and spinal implant systems.
Xtant president and CEO Sean Browne 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 $14 million in annual revenue and attractive margins to enable Xtant to achieve profitability in the near future.”
Xtant is engaged in designing, developing, and marketing orthobiologics and spinal implant systems for spinal fusion in complex spine, deformity, and degenerative procedures.
For Surgalign, the deal is said to bolster its balance sheet as it focuses on its digital health strategy.
Surgalign president and CEO Terry Rich said: “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.”