Nasdaq-listed bio-science company OrthoPediatrics has acquired ApiFix, a portfolio company of Singapore-listed Trendlines, for $2 million in cash and nearly 1 million shares of the company’s common stock, according to an announcement.
OrthoPediatrics, a company focused on advancing the field of pediatric orthopaedics, said the acquisition includes ApiFix’s minimally invasive deformity correction system for non-fusion treatment of progressive idiopathic scoliosis.
ApiFixis is an Israel and Boston-based medical device company known for its less invasive spinal deformity correction system. Together with vertebral body tethering, it is one of only two non-fusion technologies approved by the US Food and Drug Administration under its Humanitarian Device Exemption provision.
The company is led by Paul Mraz, a Boston-based executive with nearly 30 years of spine and orthopaedic medical device experience.
Based on the agreement, ApiFix shareholders will receive an aggregate of 934,784 new common shares, representing approximately $38 million, of the US firm and $2 million in cash. The deal also involves guaranteed milestone payments in the form of cash and shares and an earnout over a period of four years.
The acquisition comes as OrthoPediatrics estimates non-fusion procedures to grow significantly as more patients, their families, and surgeons recognise the benefits of non-fusion.
Traditional surgical correction is a highly invasive procedure involving fusion, which results in a rigid spine and low patient quality of life.
“We believe that ApiFix fills a major treatment gap that could potentially allow patients to avoid fusion surgery,” Mark Throdahl, President and Chief Executive Officer of OrthoPediatrics, said.
Trendlines, which held 18.62 per cent of ApiFix at the closing of the acquisition on April 1, estimated ApiFix’s last valuation at $3.5 million. The minimum guaranteed consideration due to Trendlines from the acquisition is $13.2 million.
Trendlines said its shareholdings in ApiFix will be converted into cash, short-and long-term receivables, and short- and long-term investments.
“The acquisition of ApiFix by OrthoPediatrics will expand ApiFix’s business under the global leader of the pediatric orthopedics community. We look forward to OrthoPediatrics bringing market-changing scoliosis treatment to pediatric patients worldwide,” said Trendlines chairman and CEO Todd Dollinger.