Sam Brusco, Associate Editor07.24.23
Spinal Stabilization Technologies (SST) and BlueRiver Acquisition Corp. began a business combination agreement that, upon closing, will operate as Spinal Stabilization Technologies and be listed on an approved stock exchange.
The combined company is estimated to have a post-transaction enterprise value of about $302 million, given a proposed future $40 million equity raise and 100% redemptions by BlueRiver public shareholders. The deal’s proceeds, according to the company, will fund execution of the SST business plan, funding a pivotal trial, and commercial expansion. The transaction is expected to close in Q4 2023 or early 2024.
SST focuses on developing and commercializing a proprietary lumbar implant for nucleus pulposus replacement to relieve certain types of lower back pain. Its flagship PerQdisc, a lumbar intervertebral disc nucleus replacement, is investigational in the U.S. and hasn’t yet been approved by the U.S. Food and Drug Administration (FDA).
PerQdisc is a silicone-based prosthesis that’s formed in-situ to mimic natural function of the native nucleus pulposus to provide a motion-preserving surgical solution. It earned FDA breakthrough device status in March 2021 and has been the subject of clinical studies outside the U.S.
The device is engineered for a fast, minimally invasive alternative to spinal fusion and total disc replacement. The custom-fit implant procedure aims to preserve anatomy, including bones, muscles, and soft tissues around the disc. A small part of the central part of the disc is removed, then perQdisc is inserted in the center of the disc, where it cures within 10 minutes, according to SST. No screws, rods, or fixation devices are placed in the surgery. The company claims patients can be discharged earlier than those receiving a spinal fusion or total disc replacement.
SST expects to begin a U.S. pivotal trial for PerQdisc in Q2 2024, pursuant to an IDE being designed by spinal surgeon key opinion leaders. The company aims to grab market share for augmented discectomy and degenerative disc disease treatments.
The combined company is estimated to have a post-transaction enterprise value of about $302 million, given a proposed future $40 million equity raise and 100% redemptions by BlueRiver public shareholders. The deal’s proceeds, according to the company, will fund execution of the SST business plan, funding a pivotal trial, and commercial expansion. The transaction is expected to close in Q4 2023 or early 2024.
SST focuses on developing and commercializing a proprietary lumbar implant for nucleus pulposus replacement to relieve certain types of lower back pain. Its flagship PerQdisc, a lumbar intervertebral disc nucleus replacement, is investigational in the U.S. and hasn’t yet been approved by the U.S. Food and Drug Administration (FDA).
PerQdisc is a silicone-based prosthesis that’s formed in-situ to mimic natural function of the native nucleus pulposus to provide a motion-preserving surgical solution. It earned FDA breakthrough device status in March 2021 and has been the subject of clinical studies outside the U.S.
The device is engineered for a fast, minimally invasive alternative to spinal fusion and total disc replacement. The custom-fit implant procedure aims to preserve anatomy, including bones, muscles, and soft tissues around the disc. A small part of the central part of the disc is removed, then perQdisc is inserted in the center of the disc, where it cures within 10 minutes, according to SST. No screws, rods, or fixation devices are placed in the surgery. The company claims patients can be discharged earlier than those receiving a spinal fusion or total disc replacement.
SST expects to begin a U.S. pivotal trial for PerQdisc in Q2 2024, pursuant to an IDE being designed by spinal surgeon key opinion leaders. The company aims to grab market share for augmented discectomy and degenerative disc disease treatments.