The partnership and investment agreement comprise a collaboration designed to develop a cervical platform and deploy single-use, sterile-packed procedure solutions to increase operating room efficiency, reduce procedural times and costs, improve outcomes and reduce infection rates, according to a news release.
Lewisville, Texas-based Orthofix and Switzerland-based Neo Medical are looking to co-develop single-use instrumentation for cervical spine procedures. Part of the agreement entails that Orthofix will exclusively distribute Neo Medical’s thoracolumbar procedure solutions to certain U.S. accounts.
Additionally, Orthofix is set to invest $10 million in Neo Medical to support the ongoing partnership through a combination of a convertible term loan and an equity investment.
“We are very excited about the partnership with Neo Medical as we believe it will accelerate our efforts to provide innovative patient-centric procedural solutions that improve outcomes, reduce costs, lower the carbon footprint of reusable instrumentation and increase the applicability of procedures across all surgical settings,” Orthofix president and CEO Jon Serbousek said in the release. “We believe there is also a strong value proposition in adapting procedural technology to accommodate the outpatient setting and we have already created initiatives towards optimizing procedural solutions for these facilities.”
“We are very pleased to partner with Orthofix, who is emerging as an innovative leader in Spine, to help them bring disruptive, sustainable and outcome-driven innovations to the market,” added Neo Medical CEO Vincent Lefauconnier. “The partnership with Orthofix will accelerate our expansion in the U.S. market, delivering our current proven solution designed to enhance efficacy and improve patient outcomes while minimizing infections in thoracolumbar fusion procedures.”