Stryker Buys Orthopedic Device Company OrthoSpace for up to $220 Million

NYSE-listed medtech company Stryker Corp. is acquiring Israel-based orthopedic device company OrthoSpace Ltd. for $110 million upfront in cash and up to $110 in milestones, the companies announced Tuesday.

Founded in 2009 and based in Israeli affluent coastal town Caesaria, OrthoSpace develops a biodegradable balloon that can be implanted in a minimally invasive procedure between two bones, preventing friction and alleviating pain. The device, which has received a CE mark in Europe and is currently in clinical trials in the U.S., is intended for use in shoulder joints injuries.

OrthoSpace has raised $18.5 million to date according to Pitchbook data, from investors including Johnson & Johnson Innovation and Triventures.