Medtronic Invests Another $20M In Mazor Robotics
Medtronic on Monday completed a $20 million investment agreement from May with Mazor Robotics, an Israeli manufacturer of spine surgery guidance systems.
The $20 million paid by Medtronic, which holds its U.S. operational headquarters in Fridley, will be equivalent to a 3.4 percent ownership of Mazor.
Medtronic’s latest investment is technically the second tranche in a multi-part agreement that could net the company 15 percent equity stake in Mazor, a deal priced at roughly $52 million.
“Since signing the agreements in May, our two organizations have been working closely to ensure a successful partnership,” said Ori Hadomi, CEO of Caesarea, Israel-based Mazor. “This investment by Medtronic reflects a key operating achievement — the unveiling of the Mazor X Surgical Assurance Platform.”
Aside from equity investments, Medtronic’s deal also included the purchase of 15 Mazor surgery systems and an alignment of development and commercialization efforts between the two companies. If certain milestones and sales targets are hit, the deal is said to land Medtronic exclusive global sales and distribution rights for Mazor’s future spine products starting in 2018.
In particular, the unveiling of the Mazor X platform was the milestone that triggered Medtronic’s latest $20 million investment.
“The feedback is overwhelmingly positive and we plan to launch Mazor X at the [National American Spine Society] conference this October,” Hadomi added. “I am confident it will advance and change the way spine surgery is performed.
Medtronic’s ongoing deal with Mazor further bolsters its portfolio of spine treatments. Currently, the med-tech company stands as the world’s largest manufacturer of equipment used to treat spinal conditions.