NuVasive Inc. (NSDQ:NUVA) said yesterday it bought intraoperative neurophysiological monitoring service provider Biotronic NeuroNetwork for $98 million in cash.
Biotronic NeuroNetwork provides neurophysiological monitoring services to surgeons and healthcare facilities in the U.S., as well as remote physician oversight. The company supports more than 45,000 surgeries annually at more than 650 hospitals, NuVasive said.
“We are extremely excited about this combination, as it more than doubles NuVasive’s neurophysiology footprint, creating an at-scale services business with improved growth and operational benefits. The addition of Biotronic enhances our service offerings and provides enormous potential to deliver greater integration across our procedurally-integrated portfolio, which uniquely differentiates NuVasive in the markets we serve. We believe NuVasive is better positioned than ever to build off the strong foundation established in early 2015 when we aligned our U.S. field personnel to form a combined sales and services organization, including the integration of the company’s neurophysiology services offering. This pivotal integration, in combination with the greater operational discipline instilled into our services business over the last year, is now delivering strong results, including a nearly 25 percent year-over-year increase in our NVM5 disposables business in the first quarter of 2016. We remain evermore committed to growing our spine service line partnerships and infusing our expertise to help our hospital partners transform how spine procedures are approached, measured and valued from a clinical and economic perspective,” NuVasive CEO Gregory Lucier said in a press release.
San Diego, Calif.-based NuVasive said the addition “doubles the footprint” of its service business, and will allow it to “increase the breadth of differentiated products and services offered to health systems” as the company builds its spine service line.
“For more than 35 years, the team at Biotronic has built a phenomenal business focused on providing the highest quality of intraoperative neural monitoring services designed to provide patient safety and deliver economic benefit for hospitals and surgeons. We look forward to joining forces with NuVasive to further build out service offerings that drive improvements in patient care,” Biotronic CEO William Gecsey said in a prepared statement.
Biotronik NeuroNetwork brought in $50 million in revenue last year, NuVasive said.
Last month, NuVasive said it’s launching its Attrax bone putty in the U.S., after winning 510(k) clearance from the FDA in October 2015. The synthetic bone graft putty is designed to encourage bone growth at the site of a spinal fusion procedure.
NuVasive said the Attrax putty is made with a special surface structure designed to push mesenchymal stem cells into becoming bone-forming osteoblasts without using additional growth factors.
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