Amedica Inks Deal for US Spine

Amedica Corporation has purchased US Spine in a move to expand market share in spine and orthopedic reconstruction.

Amedica is a spinal and orthopedic implant and instrument company focused on unique silicon nitride (SiN) ceramic technologies. Boca Raton, Fla.-based US Spine is a privately held firm that develops spinal implant systems for minimally invasive procedures, allograft, and deformity correction procedures, which Amedica executives claim complement their existing spinal implant and device product lines.

Terms of the transaction were not disclosed.

According to officals for Salt Lake City, Utah-based Amedica, in additional to spinal implants, SiN materials have “market changing characteristics” for hip, knee and extremity implant applications as well. Among the benefits they noted are fracture resistance and bearing/articulating surfaces that don’t produce wear debris causing the breakdown of bone (called osteolysis), which can lead to re-operations. Additionally, the implants employ a hydrophilic and conductive micro-structure surface to enhance bone in-growth and solid attachment.

“This acquisition will clearly enable Amedica to establish itself as a complete and full-line spinal implant concern with leading edge technologies including, and further integrating, the very unique silicon nitride advantage,” said Ben Shappley, president and CEO of Amedica. “As a result of this transaction, Amedica has doubled its distribution network and sales and marketing management and enhanced its international presence.”

Amedica certainly seems to be exhausting multiple avenues for growth and product development. Earlier this year, the company signed a joint-venture development agreement with Orthopaedic Synergy Inc. (OSI), a hip and knee implant firm. OSI’s corporate headquarters are in East Taunton, Mass., and its design, development and manufacturing center is based in Christchurch, New Zealand. Amedica also recently received four new patents—one for ceramic-on-ceramic bearings, another for a hip implant using mono-block silicon nitride technology, a third for silicon nitride knee components, and a fourth for motion-preserving total disc replacement technology. In addition, Amedica partnered with SUNY Upstate Medical University in Syracuse, N.Y., to measure and clinically support the fusion performance of silicon nitride implant devices.

In September, to help fund the US Spine and other purchases, Amedica completed a $30 million financing consisting of $15 million in private equity and a debt facility of $15 million. Zions First National Bank, also based in Salt Lake City, provided the debt facility, and Creation Capital of New York, N.Y., and Austin, Texas, acted as the placement agent for the private equity piece. Creation Capital is an established banking concern that specializes in high-growth emerging healthcare technologies.

In addition to mergers and acquisitions, the proceeds from the financing will be used for other expansion activities and sales and marketing support, Shappley said. He added that Amedica has shown “solid growth” with a growth rate of 24 percent over the last six quarters in its spinal implant business.