Mazor Robotics Ltd, a developer of bone-mounted surgical robotic guidance systems based in Israel, has entered into strategic agreements with Medtronic to promote, develop and distribute certain Mazor products.
The companies have also signed an agreement for equity investment by Medtronic in Mazor.
The commercial agreement has an initial US-based co-promotion phase. If both organisations achieve their respective milestones by the end of 2017, then the companies will enter the second phase of the agreement, in which 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. The agreement also stipulates that Mazor will be Medtronic’s sole strategic partner for development and commercialisation of robotic-based spine systems and applications. The two companies have already begun co-development activities of synergistic products and applications for spine, and will begin working closely together to meet designated sales targets.
“The structure of the commercial agreement features some very important points for our customers as well as our shareholders,” said Ori Hadomi, Mazor Robotics’ CEO. “New developments, such as synergistic implants, could generate new revenue streams for Mazor, beyond the anticipated growth in our current revenue streams from capital equipment, service agreements and disposables. The synergy between the organisations’ teams will potentially yield operational efficiency benefits for Mazor.”
