Medtronic is hoping to boost its presence in the growing spinal-surgery market with the $1.6 billion acquisition of a robotics company whose system it already distributes worldwide.
Its acquisition of Mazor Robotics and its Mazor X robotic guidance system fits well with Medtronic's much-touted "value-based" health care initiatives. Although buying one of Mazor's advanced surgical planning and guidance systems may cost six figures upfront, the expense should be recouped over time as procedures become more precise, resulting in fewer post-surgical problems and long-term costs.
The deal announcement, published Thursday night, describes Mazor's Mazor X and Renaissance surgical systems as transforming spinal surgery "from freehand procedures to accurate, state-of-the-art, guided procedures."
Proponents say the systems can improve the speed and accuracy of surgical procedures, reducing margins for error and making spinal surgery outcomes more reproducible.
The system creates a three-dimensional surgical blueprint customized to each patient's anatomy based on medical imaging, and then uses a robotic arm to position tools and implants in the right locations and trajectories over a patient's spine.
Medtronic and Mazor first announced a limited partnership in 2016 that was intended to escalate over time, as the two companies collaborated on ways to integrate Medtronic spinal products into Mazor's robotic guidance platform. In August 2017, Medtronic became the exclusive worldwide distributor of the Mazor X system, with more than 80 of the systems successfully installed since launch.
The global market for spinal surgery products is expected to grow at nearly 6 percent per year, reaching $16.7 billion in sales by 2025, driven by increases in spine disorders among older adults, according to market researchers.
On Thursday, Medtronic announced that it "aims to accelerate the advancement and adoption of RAS [robotic-assisted surgery] in spine to the benefit of patients, providers, and the health care system more broadly."