OrthoPediatrics announced that it completed the acquisition of ApiFix for $2 million in cash and nearly 1 million shares of OrthoPediatrics’ common stock.
Warsaw, Ind.–based OrthoPediatrics’ purchase includes the cash, 934,768 shares of common stock and milestone payments and an earnout over four years.
Israel- and Boston-based ApiFix develops a minimally invasive deformity correction (MID-C) system for non-fusion treatment of progressive adolescent idiopathic scoliosis (AIS). MID-C is approved for use in adolescents with Lenke type 1 and Lenke type 5 curves of 40° to 60°. It is designed to act as an internal brace implanted unilaterally on the concave aspect of the curvature.
ApiFix is touted as the developer of one of just two non-fusion technologies approved by the FDA under its humanitarian device exemption provision. Compared to traditional spinal fusion and tethering procedures, the MID-C system offers reductions in surgery time, blood loss, hospitalization, recovery time, complications and revision rates, according to a news release. It is also designed to avoid permanently limiting the range of motion in its young patients.
“We believe that ApiFix fills a major treatment gap that could potentially allow patients to avoid fusion surgery,” OrthoPediatrics president & CEO Mark Throdahl said in the release. “The acquisition of this novel technology keeps OrthoPediatrics at the forefront of pediatric orthopedic care with a viable alternative to failed bracing and spinal fusion for the treatment of progressive scoliosis. We are also pleased to announce a major acquisition at this time which significantly enhances our long-term strategic position.”
“We are excited with the opportunity to grow our business with the leader in the global pediatric community,” ApiFix CEO Paul Mraz added. “We look forward to OrthoPediatrics’ ability to increase awareness and utilization of a system that is poised to disrupt the continuum of care for scoliosis treatment in pediatric patients.”
