On Feb. 28, the two companies entered into a definitive agreement whereby Xtant acquired the Coflex and Cofix product lines from Surgalign. They subsequently closed on the deal for a total consideration of $17 million.
Surgalign designed Coflex as an interlaminar stabilization device used after an open decompression in various settings. It offers a non-fusion treatment option for lumbar spinal stenosis (LSS) patients. Coflex, the only implant with FDA premarket approval for treating LSS, is a supplemental fixation device.
More than 200,000 patients over 60 countries received Coflex implants, which also estalblished ambulatory surgical center reimbursement.
Cofix, a minimally invasive system, offers usability across all levels of the lumbar spine, Surgalign said in a news release.
Xtant President and CEO Sean Browne said the company expects the acquisition to accelerate its top-line growth. The company plans to couple the Surgalign systems with its less invasive Axle interspinous device and Silex SI Fusion product lines.
Surgalign products augment Xtant offering, executives say
“Coflex augments our offering in the fast-growing segments of ASC and outpatient procedures,” Browne said. “Aligning with our key growth pillars, this acquisition expands our footprint by adding new distributors and a significant number of trained surgeons to the company’s network.”
Browne added that Xtant believes the products can add approximately $14 million in annual revenue. He expects them to enable the company to achieve profitability “in the near future.”
Surgalign President and CEO Terry Rich added that the company “found the right partner” in Extant. The company plans to use the non-dilutive capital from the deal to advance its AI-based products.
“Moving forward, we are focused on commercializing our HOLO Portal surgical guidance system, our soon-to-be-launched HOLO AI Insights for research use, and further developing our HOLO AI platform, while driving innovation in our remaining product lines to improve patient outcomes,” Rich said.
