Integra LifeSciences spinoff SeaSpine ($SPNE) announced Thursday it has agreed to acquire NLT Spine in a deal that could add up to more than $50 million.
Carlsbad, CA-based SeaSpine will pay NLT $1 million at the transaction’s closing, but the Israeli spine specialist stands to reap up to $43 million in contingent payments based on sales of its products, according to an SEC filing. There is an additional $3.5 million in SeaSpine shares up for grabs when NLT’s in-development line lateral intervertebral fusion devices gets the FDA nod and the Israeli government approves the deal. Finally, NLT could earn up to $5 million based on four commercialization-based milestones. SeaSpine may also opt out of further contingent payments any time after closing by paying an $18 million one-time fee.
“This transaction strengthens our future product offerings and broadens our growing portfolio of differentiated interbody solutions, one of the fastest growing market segments within spine, while demonstrating to distributors and the surgeon community our commitment to innovation, including through strategic acquisitions,” said SeaSpine CEO Keith Valentine in the statement.
NLT Spine focuses on treating degenerative spinal conditions via small surgical incisions. Its inerbody implants are introduced minimally invasively, and are designed to expand once in place. This allows the implants to have the benefits of larger implants, such as increased stability, but facilitates insertion and may minimize damage to surrounding tissues.
Its Prow Fusion device for transforaminal lumbar interbody fusion is FDA-cleared and CE-marked and its eSpin discectomy system is FDA- and CE-approved. The company will be seeking the FDA go-ahead for its Prow Fusion-L device for lateral intervertebral fusion.
“We see SeaSpine as the ideal group to bring to market and drive adoption of our innovative interbody spine solutions, which we believe will benefit patients and our shareholders, now and in the longer-term,” said NLt CEO Didier Toubia, in the statement.
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