RTI Surgical to acquire Paradigm Spine

RTI Surgical Inc. announced it has entered into a definitive agreement with Paradigm Spine LLC to acquire all outstanding equity interest of Paradigm Spine in a cash and stock transaction valued up to $300 million, which consists of $150 million at closing and potential future milestone payments, according to a press release.

According the terms of the agreement, RTI will pay $100 million in cash and 10,729,614 shares of RTI common stock at closing. A combination of cash and RTI common stock will be used for the potential milestone payments. The board of directors of RTI and the board of managers of Paradigm Spine approved the transaction, which is scheduled to close in the first quarter of 2019.

Paradigm Spine’s coflex interlaminar stabilization device is FDA premarket approved (PMA) for the treatment of moderate to severe lumbar spinal stenosis in conjunction with decompression.

“With coflex, the Paradigm Spine team has created a differentiated implant that has a demonstrated track record of improving patient outcomes and addresses a critical and growing need in the spine surgery space,” Camille Farhat, president and CEO of RTI, said in the release. “Coflex is FDA PMA approved and an established treatment that we believe is poised for accelerated and sustainable long-term growth given its clinical efficacy and ongoing progress toward insurance coverage. We look forward to working with the Paradigm Spine team to complete this compelling addition to the RTI Surgical family.”

According to the release, the transaction between RTI and Paradigm Spine is subject to the satisfaction of customary closing conditions and applicable approvals, which include clearance under the Hart-Scott-Rodino Antitrust Improvements Act and approval from RTI shareholders and Paradigm Spine equity holders.

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