Mazor Robotics Ltd – ADR (NASDAQ:MZOR) has disclosed that the strategic partnership the maker of surgical guidance systems formed with Medtronic plc. Ordinary Shares (NYSE:MDT) to commercialize and co-promote its Mazor X platform is turning out well. According to the management, the two firms have been fruitfully engaged in the shared training, marketing, and promotion efforts needed to commercialize Mazor X.
The partnership between the two medical equipment manufacturers was signed in 2016 and besides the commercial aspect of it, it also had an equity investment deal. At the time, the chief executive officer of Mazor Robotics, Ori Hadomi, hailed the agreement saying it would be beneficial to both customers and shareholders.
Training specialists
The partnership between the two companies has also seen hundreds of clinical specialists receive training on the use of Mazor X. Though Mazor X was initially unveiled in July 2016, in the United States Mazor X was commercially launched during the October 2016 annual meeting of NASS – North American Spine Society that took place in Boston, Massachusetts. During the launch, Mazor Robotics’ chief executive described the spine surgery guidance system as revolutionary and transformative.
“The Mazor X system is the culmination of a multi-year development effort by our team of robotic, algorithm and imaging experts, incorporating market feedback gathered from thousands of clinical cases performed with the Mazor core technology,” said Hadomi.
Pre-launch activities
Some of the pre-launch activities that Mazor Robotics engaged in included introducing dozens of spine surgeons to Mazor X by inviting them to labs conducted by the surgery guidance systems maker.
With regards to the equity investment agreement, the deal stipulated that Medtronics would buy a stake in Mazor by acquiring securities that had been newly issued. This stake would be worth approximately $11.9 million. Medtronic would also acquire an additional stake on condition that Mazor achieved some stipulated operational guidelines. In the commercial agreement, the agreement’s second phase anticipated that Medtronic would take over the sales rights and the distribution rights of spine products that Mazor may develop in the future.
In Monday’s trading session, shares of Mazor Robotics Ltd edged up by 0.38% to close the day at $23.59.
