Stryker Corp. completed the acquisition of privately held OrthoSpace Ltd. for an upfront cash payment of $110 million to bolster its sports therapy portfolio.
The Kalamazoo, Mich.-based medical-device maker, Stryker, will also pay an additional $110 million in milestone payments to OrthoSpace.
Stryker said the acquisition is complementary to its existing portfolio and aligns with its focus on investing in sports medicine.
Israel-based OrthoSpace's product portfolio uses a differentiated technology for treating massive irreparable rotator cuff tears — a group of muscles and tendons that surround the shoulder joint. Rotator cuff injuries occur more often in people who perform overhead motions in their jobs or sports.
OrthoSpace's product InSpace, which is in development and not approved in the U.S., is a biodegradable implant that is designed to realign the natural biomechanics of the shoulder.
Stryker said the transaction is expected to have little effect on its net earnings for 2019.