NuVasive made its first transaction of 2021, acquiring Simplify Medical in a multimillion dollar deal.
The acquisition adds Simplify Medical's complete portfolio into NuVasive's product line including the Simplify Disc for cervical total disc replacement to NuVasive's C360 portfolio, according to a Feb. 24 announcement.
As a result of the acquisition, NuVasive's portfolio now includes products that address all key segments of the cervical spine.
The Simplify Disc is currently being evaluated for 2-level indications in a separate study in the U.S., pending FDA approval. The device is supported through an FDA investigational device exemption for level-1 indications.
NuVasive will use its commercial and distribution channels to sell the Simplify Disc in the U.S. and abroad.
NuVasive expects the deal will directly accelerate net sales goals, and will be accretive to its non-GAAP diluted earnings in 2022.
NuVasive made an upfront payment of $150 million to Simplify Medical at closing. NuVasive will make additional payments if certain regulatory approval and sales milestones are met.
J. Christopher Barry, CEO of NuVasive, said in a release: "The acquisition of Simplify Medical advances our previously communicated long-term growth strategy by both expanding, and further distinguishing, our portfolio with industry-leading innovation."
NuVasive will announce its fourth quarter 2020 and full year 2020 financials Feb. 25.