Stryker strengthens orthopedic portfolio with $220m acquisition of OrthoSpace

US medical technology giant Stryker has acquired Israeli firm OrthoSpace in a major all-cash deal valued at up to $220 million.

The acquisition marks a significant step for Stryker in expanding its orthopedic portfolio, particularly in the field of sports medicine. Under the terms of the deal, Stryker made an upfront payment of $110 million, with the potential for future milestone payments reaching up to another $110 million.

Founded in 2009 in Caesarea, Israel, OrthoSpace specializes in developing innovative medical devices aimed at improving outcomes for patients suffering from complex orthopedic conditions. The company’s flagship product, InSpace, is a biodegradable balloon system designed to treat massive irreparable rotator cuff tears. This cutting-edge technology provides an advanced solution that has the potential to significantly improve the management of shoulder injuries.

A Revolutionary Solution for Shoulder Pain Relief

InSpace’s key innovation lies in its biodegradable sub-acromial spacer, which is inserted into the shoulder joint through a minimally invasive procedure. Once in place, the balloon creates space between the two bones in the shoulder that are causing friction and pain due to rotator cuff damage. By reducing this friction, InSpace effectively alleviates the chronic pain associated with rotator cuff tears, offering a less invasive alternative to more traditional surgical methods.

This technology is still undergoing clinical trials in the United States and has yet to secure regulatory approval for treating rotator cuff tears. Despite this, InSpace already boasts a strong clinical track record, having treated over 20,000 patients across 30 countries.

The Experts Weigh In: Insights from OrthoSpace’s Leadership

Assaf Dekel, the founder and Chief Medical Officer of OrthoSpace, emphasized the simplicity and effectiveness of the InSpace balloon, stating, “The InSpace balloon is a simple, outpatient solution that can be deployed minimally invasively, and improvements in patient pain and function are documented in numerous peer-reviewed publications.”

Dekel’s remarks underscore the growing confidence in InSpace’s ability to offer a viable, patient-friendly option for treating severe shoulder injuries with a less invasive approach than traditional surgery.

Stryker’s Strategic Expansion in Sports Medicine

Andy Pierce, President of Stryker’s MedSurg Group, expressed enthusiasm about the acquisition, stating, “The acquisition of OrthoSpace is highly complementary to our existing portfolio and aligns with Stryker’s focus on investing in sports medicine.”

Pierce added that the acquisition strengthens Stryker’s offerings by adding a new, minimally invasive surgical option for addressing a complex and challenging pathology. With a foothold in key global markets and a product that is gaining significant traction, OrthoSpace’s technology presents a valuable growth opportunity for Stryker.

Following in the Footsteps of Recent Acquisitions

Stryker’s acquisition of OrthoSpace comes just a month after it purchased Arrinex, a California-based company behind ClariFix, a cryoablation technology used to treat chronic rhinitis. This acquisition further highlights Stryker’s continued focus on expanding its portfolio with cutting-edge medical technologies that can improve patient care and outcomes in a variety of specialties.

With the OrthoSpace acquisition, Stryker strengthens its position in the orthopedic and sports medicine sectors, positioning itself as a leading player in addressing some of the most challenging musculoskeletal conditions.