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Mazor Robotics signs commercial investment agreements with Medtronic
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Mazor Robotics Ltd. and Medtronic signed two agreements, according to a Mazor Robotics company release.
The first agreement is a two-stage, multi-faceted, commercial agreement for co-production, co-development and potential global distribution of certain Mazor products. If both organizations achieve their respective milestones by the end of 2017, the companies will enter the second phase. In the second phase, Medtronic will assume exclusive global sales and distribution rights for Mazor’s future spine products. The agreement also makes Mazor and Medtronic sole strategic partners for development and commercialization of robotic-based spine systems and applications.
The second agreement provides a three-step process for equity investment in Mazor. First, Medtronic will purchase from Mazor newly issued securities representing 4% of Mazor’s share capital totaling $11.9 million. Second, Medtronic will purchase 6% of Mazor’s securities at the average price per-share during the 20 trading days after reaching each milestone. If each milestone is met, the third phase may take place in which Mazor, at its discretion, will issue 5% of its securities and shares to Medtronic at a price per-share equal to the 20-day average prior to Mazor exercising the option.
“New developments, such as synergistic implants, could generate new revenue streams for Mazor, beyond the anticipated growth in our current revenue streams from capital equipment, service agreements and disposables,” Ori Hadomi, chief executive officer of Mazor Robotics Ltd., said in the release. “The synergy between the organizations’ teams will potentially yield operational efficiency benefits for Mazor.”
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