RTI Surgical Holdings, Inc. (RTIX - Free Report) announced that it has recently closed the deal to acquire Paradigm Spine, LLC. This acquisition, which was initiated back in November 2018, aligns with RTI’s goal of expanding its spine portfolio.
Over the years, RTI has earned a reputation as one of the pioneers in the field of surgical implant procedures. Paradigm Spine happens to be a key market player in motion preservation and non-fusion spinal implant technology, with its primary product being the coflex Interlaminar Stabiliization device.
About the Acquisition
The acquisition of Paradigm Spine by RTI should enable the latter to invest in differentiated products and build scale within its business. The highlight of this buyout is the integration of the Paradigm Spine’s coflex device into RTI’s prevailing spine portfolio, which comprises top-notch hardware, interbody and biologic options.
How Strategic is the Deal?
Coflex is a differentiated, minimally invasive motion preserving stabilization implant. This device has already received the PMA (Pre-Market Approval) by the FDA for the treatment of lumbar spinal stenosis (LSS) combined with decompression. LSS is a highly incapacitating disease, affecting 1.6 million patients every year in the United States.
Hence, the integration of Paradigm Spine’s coflex will enhance RTI’s existing spine portfolio, thereby boosting the company’s top line, going forward.
The global market for spinal implants and devices is projected to reach a total value of $13.38 billion, progressing at a CAGR of 4.6% during the forecast period of 2015-2022. Considering the abundant market prospects, this acquisition is strategically-timed.
Recent Developments by RTI
In August 2018, RTI announced partnership with Aziyo Biologics for the distribution of ViBone for spine and other orthopedic procedures. Earlier that year, RTI featured next generation spine implant technologies at NSS 2018. Early 2018, RTI also acquired Zyga Technology to integrate the latter’s Simmetry Sacroiliac joint fusion system. Further, RTI launched Fortilink -TS and -LIBF systems with TETRAfuse 3D technology.
The company is gradually strengthening its foothold in the exponentially-growing spine surgery market, banking on these product launches and strategic expansions. However, imminent threat is from giant players like Intuitive Surgical Inc (ISRG - Free Report) , Zimmer Biomet Holdings, Inc. (ZBH - Free Report) and Stryker Corporation (SYK - Free Report) . RTI needs to constantly introduce or acquire new products to withstand this competitive pressure and maintain its market share.
Over the past year, RTI’s shares have rallied 15.5%, outperforming the industry’s growth of 6%.
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