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Alphatec (Nasdaq:ATEC) today announced that it acquired all assets related to the REMI robotic navigation system from what was previously known as Fusion Robotics, but is now Accelus after Fusion merged with Integrity Implants in 2021.
The purchase price for the acquisition totals $55 million. REMI is a robotic-enabled minimally invasive system that integrates navigation and robotics into spine procedures. These procedures utilize either a 3D imaging scan or 2D fluoroscopic images of the patient. REMI’s small, table-mounted navigation system guides instrumentation and implants to a precise destination during surgery.
Alphatec said incorporating REMI into its procedural strategy could improve surgical predictability. It could also reduce radiation exposure and enhance intra-operative precision.
Dr. Kevin Foley, Fusion Robotics co-founder, said he’s “thrilled” the Fusion team can bring REMI to Alphatec’s “innovation machine.”
“ATEC’s intention is to further clinical distinction by integrating actionable information into the spine’s procedural workflow,” said Pat Miles, chair and CEO. “With our SafeOp and EOS systems, we have demonstrated prowess in identifying informational technologies and know-how that can integrate information into spine surgery’s procedural workflow. We are excited to add the Fusion Robotics platform’s navigation and robotic precision capabilities to ATEC’s intra-operative informational ecosystem and advance our commitment to control clinical variables in the operating room.”
Alphatec expects growth in 2023
In addition to the news of the REMI acquisition, Alphatec released preliminary first-quarter financial results. Those results include 52% year-over-year growth.
The company attributed this to momentum fueled by surgical revenue growth of more than 53%. It also expects surgical volume growth of at least 39% compared to the same period a year before.
Alphatec also offered full-year guidance of approximately $450 million in revenues. That would represent a 28% year-over-year gain.
That total includes surgical revenue of approximately $393 million. Alphatec projects non-GAAP adjusted EBITDA break-even for the full year.
Funding on the way?
In a separate news release, the Carlsbad, California-based company priced an underwritten offering of common stock.
The offering constitutes 4,285,715 shares of common stock priced at $14 apiece. Alphatec projects gross proceeds of approximately $60 million. It expects the offering to close on or about April 21.
TD Cowen serves as the sole book-runner for the offering.