Mazor Robotics Signs Strategic Commercial, Investment Deals With Medtronic

(RTTNews) - Mazor Robotics Ltd. (MZOR), an Israeli developer of bone mounted surgical robotic guidance systems, Wednesday said it has entered into two strategic Commercial and Investment agreements with Medtronic plc (MDT), a company in Spine Technologies and Solutions.

One agreement is a two-stage, multi-faceted, commercial agreement for co-promotion, co-development and, upon meeting certain milestones, potential global distribution of certain Mazor products. The second agreement is for an equity investment by Medtronic in Mazor.

Mazor said the commercial agreement has an initial U.S.-based co-promotion phase. If both organizations achieve their respective milestones by the end of 2017, then the companies will enter the second phase of the agreement. This this, Medtronic will assume exclusive global sales and distribution rights for Mazor's future spine products.

The second phase includes annual quotas with a cumulative potential of hundreds of next-generation systems over a four-year period. The commercial agreement is for Mazor's future systems and applications, and Medtronic has placed a commitment to purchase 15 of these future systems during 2016.

As per the deal, Mazor will be Medtronic's sole strategic partner for development and commercialization of robotic-based spine systems and applications.

The investment agreement provides for a three-step equity investment in Mazor. In the first tranche, Medtronic will four percent of Mazor's stake for a total of $11.9 million. In the second tranche, Medtronic will purchase six percent of Mazor's stake, and in a potential third tranche, Mazor will have the right to consummate the issuance to Medtronic of securities representing up to five percent of Mazor's stake.

Mazor remains an independent company, which will continue to innovate in spine as well as in other markets, and will continue to sell and fully support the RenaissanceSystem through its own sales team and distribution partners.