Mazor picks up $20M from Medtronic as it launches spine surgery robot

mazor

Earlier this year Mazor Robotics made two deals with Medtronic worth up to $50 million to come in three potential tranches. At the time, it picked up $11.9 million in return for 4% of its shares. Now, with the launch of its new robotic-assisted spine surgery system, the Israeli small cap is meeting a milestone and stands to collect a second tranche of up to $20 million from Medtronic.

The initial partnership was forged in May and comprised co-promotion, co-development and the potential global distribution of Mazor’s future spine products by Medtronic ($MDT). All told, the tie-up could exceed $50 million, with Medtronic owning about 15% of Mazor if all tranches are executed. The third tranche depends on the initiation of global distribution of Mazor’s products.

Mazor revealed its Mazor X guidance platform for spine surgeries on Tuesday. The system was designed to go beyond trajectory guidance and incorporate analytical tools, multisource data, optical tracking, intra-op verification and connectivity technologies, Mazor said in a statement.

Webinar

How ICON, Lotus, and Bioforum are Improving Study Efficiency with a Modern EDC

CROs are often at the forefront of adopting new technologies to make clinical trials more efficient. Hear how ICON, Lotus Clinical Research, and Bioforum are speeding database builds and automating reporting tasks for data management.

“The Mazor X platform expands the field of spine surgery from trajectory guidance to assisting surgeons with a total patient treatment strategy,” said Mazor CEO Ori Hadomi in the statement." Following our recently formed partnership with Medtronic and the increased market access it provides us, the launch of the Mazor X positions us for accelerated growth and long term leadership in the spine market."

As part of the co-promotion and co-development agreement, Medtronic has already ordered 15 Mazor X systems, according to the statement. And while the duo will work together to co-develop products for spinal surgery using Medtronic implants, Hadomi said the system will be compatible with other companies’ implants, the Star Tribune reported. The Mazor X will go for an “introductory” price similar to that of Mazor’s Renaissance system, which sells for $850,000, according to the Star Tribune.

In the meantime, Medtronic is also working on its own surgical robot, which it intends to use in every surgery that robots are currently able to perform. The robot is “likely” to enter the market in 2018, according to analysts. But Medtronic isn’t the only devicemaker trying to get in on surgical robotics. While Intuitive Surgical ($ISRG) has enjoyed leading the pack, Johnson & Johnson ($JNJ) and Verily’s joint venture, Verb, is working on surgical robotics. And Auris Surgical Robotics and Hansen Medical ($HNSN)--both founded by Dr. Frederic Moll, who also founded Intuitive--announced earlier this year that they would merge.

- here's Mazor's statement
- here's the Star Tribune story

Related Articles:
Medtronic enters robotic spinal surgery in a partnership with, investment in Israeli small cap
Medtronic details robotic surgery program expected to launch in 2018
J&J to enter structural heart devices, details Verb strategy in robotic surgery
Intuitive Surgical partners, invests to create individualized informatics for robotic surgery
Robotic surgery to see new entrants Medtronic and J&J/Google, but Intuitive still miles ahead

Read more on

Suggested Articles

Novartis’ fevipiprant has failed another pair of phase 3 clinical trials, prompting the Swiss pharma to halt further development in asthma.

All 12 members of an FDA advisory committee voted to recommend the approval of teprotumumab for a rare, autoimmune eye disease.

The FDA has cleared its first fully disposable duodenoscope, following years of reports of infections being transmitted between patients.