Brian Blum
March 18, 2019

Israeli orthopedic device maker OrthoSpace has been acquired for $220 million by UK-based med-tech firm Stryker. The deal calls for Stryker to make an immediate payment to OrthoSpace of $110 million, followed by future milestone payments of up to an additional $110 million.

OrthoSpace’s main product, InSpace, is a minimally invasive plastic cushion that helps patients avoid surgery following a wound or inflammation of the shoulder.

The device, developed specifically for patients with rotator cuff injuries, reduces shoulder pain and improves range of motion by implanting a biodegradable “balloon” that fits between the shoulder’s scapula and acromion bones.

The balloon allows the bones to move with less friction and mimics the shoulder’s “bursa” – the natural fluid-filled cushion between the shoulder bones.

OrthoSpace CEO Itay Barnea says that 20,000 patients worldwide have already been treated with InSpace, which was designed “for patients who have few other options.”

InSpace is approved for use in Europe and countries accepting the EU’s CE mark. It’s currently undergoing clinical trials in the United States, so it hasn’t been given the go-ahead for use there yet.

Stryker actively invests in sports-medicine products. Stryker Med-Surg Group President Andy Pierce said that the OrthoSpace acquisition aligneswith the company’s overall focus on orthopedics, medical and surgical equipment, and nanotechnology.

The Innova Health Fund owns 75 percent of OrthoSpace, which was founded in 2008 in the Xenia technology incubator. The company raised $30 million prior to the acquisition from investors including Triventures and Johnson & Johnson.

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