NuVasive (NSDQ:NUVA) yesterday announced that it has acquired Simplify Medical for $150 million.
Through the deal, NuVasive made an upfront payment of $150 million at closing using cash on hand, subject to customary purchase price adjustments. The company agreed to make additional future payments contingent upon milestones related to regulatory approval and net sales.
Simplify Medical develops the Simplify Cervical Artificial Disc for cervical total disc replacement (cTDR). The acquisition adds the cTDR technology to NuVasive’s cervical portfolio to address all key segments of the cervical spine.
The disc is anatomically designed and includes 4, 5 and 6 mm options. It has unique articulation to allow for a variable center of rotation for each treated level and is designed to mimic the motion dynamics of a natural spine segment.
“The acquisition of Simplify Medical advances our previously communicated long-term growth strategy by both expanding, and further distinguishing, our portfolio with industry-leading innovation,” NuVasive president and CEO Christopher Barry said in a news release. “Combining the Simplify Disc with NuVasive’s C360 portfolio will enable us to provide surgeons with world-class cervical technology, regardless of their preferred procedural approach. We are excited about the opportunities this acquisition creates as we work to optimize the surgeon experience, advance the standard of care, and create value for shareholders.”
Simplify Medical’s Simplify Disc is supported by level 1 evidence through an FDA investigational device exemption study and was found to be clinically superior to anterior cervical diseconomy and fusion in its randomized controlled trial. The device is being evaluated in a separate investigational device exemption study for level2 indications, pending FDA approval.
“As demonstrated by the strong clinical data and the unique design characteristics of the Simplify Disc, we share NuVasive’s focus on outcome-driven innovation,” Simplify Medical president and CEO David Hovda said.