Dive Brief:
- Alphatec Holdings, a spine surgery technology company, said on Thursday it had paid $55 million to acquire the REMI robotic navigation system from Fusion Robotics.
- The Carlsbad, Calif.-based company expects the platform to begin generating revenue in 2025.
- Alphatec also announced preliminary first-quarter revenue and raised its 2023 revenue forecast. The estimated quarterly revenue range of $108 million to $109.5 million beat analysts’ consensus expectation by 7%, Saxon wrote.
Dive Insight:
The REMI, or Robotic-Enabled Minimally Invasive, system integrates navigation and robotics into spine procedures using either a 3D imaging scan or 2D fluoroscopic images of the patient.
The small, table-mounted navigation system guides instrumentation and implants to a precise destination during surgery, Alphatec said. The system is intended to improve surgical predictability and reduce radiation exposure.
Needham analyst David Saxon wrote in a research report that while REMI platform’s installed base is still small, the system could become a growth driver for Alphatec in 2025.
The company will need to get its own instruments and implants cleared to be compatible with the robotic system, along with clearance for free-hand navigation, and integrate the robot into a lateral surgical approach, he added.
Saxon also noted that company management expects the system to be priced at about $500,000.
“We expect the REMI platform to begin contributing to revenue in 2025,” Alphatec spokesperson Tina Jacobsen wrote in an email. “I would prefer not to say what it will sell for as we are still aligning on flexible purchase options and what those will look like.”
Alphatec raised its 2023 revenue forecast to $450 million from its previous estimate of $438 million, reflecting growth of about 28% over last year.
The company also said it expects to raise about $60 million in a stock offering that is scheduled to close today.
Updates with comment from Alphatec.
