Mazor Robotics, which entered a robotic surgery partnership with Medtronic last year, has reached the next stage of the collaboration ahead of schedule, picking up another $40 million from the device giant.
When the companies inked a pair of deals in May last year, Mazor bagged $11.9 million in return for 4% of its shares. In August, Medtronic handed over a second tranche of $20 million in exchange for a 3.4% stake. The payment was triggered when the Israeli company met its first milestone—the launch of its guidance platform for spine surgeries, Mazor X.
Now, Mazor is meeting certain sales and marketing milestones early, earning the next tranche of $40 million and prompting adjustments to their agreement. This brings Medtronic’s total investment in Mazor to $72 million.
“I believe that the move to this next phase reinforces our significant leadership position in the growing market for surgical guidance systems for spine procedures. Our strategic partnership will allow hospitals in new markets around the world to have access to the Mazor X and gain the clinical benefits that this technology offers,” said Mazor CEO Ori Hadomi, in a statement.
Medtronic is assuming global distribution rights for the Mazor X Surgical Assurance Platform in the spine market. The duo is also co-developing products that combine Mazor’s surgical planning chops with Medtronic’s expertise in surgical navigation and implant systems. They plan to unveil the first fruits of this collaboration in the fall.
“The strategic partnership between Mazor and Medtronic has already resulted in 59 Mazor X system orders since the October 2016 launch and reflects an accelerated sales cycle due to customers’ eagerness to adopt our solutions for the spine market,” Odomi said. “Now, as commercial responsibility for the Mazor X in the spine market shifts to Medtronic, the annual minimums for sale of Mazor X systems agreed to by the two companies are expected to drive substantial improvement in Mazor’s financial results during the next several years. Together we will be able to further advance our robust jointly-developed product pipeline for the spine market, to make a difference for patients while Mazor also pursues new opportunities to apply our innovative technologies to other medical needs.”