Stryker to Acquire Mobius Imaging and Cardan Robotics for $370M

Kalamazoo, Michigan-based Stryker Corporation, the #1 robotics company in orthopedics, announced a definitive agreement to acquire Mobius Imaging as well as its sister company Cardan Robotics.

The purchase price was a cash payment of $370 million with up to $130 million in potential development and commercial milestone payments. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter, with no material 2019 earnings impact anticipated.

This purchase is indicative of the rising importance of robotic-assisted surgery—in Stryker and the med tech industry as a whole.

Stryker Corporation

Founded in 1941 by medical doctor and inventor Homer Stryker, M.D., Stryker is now an international leader among medical technology companies.

Dissatisfied with the available medical technology, Dr. Stryker began inventing and constructing his own orthopedic frames. What began as a small family business, now employs over 33,000 employees worldwide. Today Stryker develops and markets many varieties of medical technologies, including orthopedic, medical, surgical, and neurotechnology.

Stryker’s corporate responsibility statement reads, “Our commitment to people and planet: We believe the health of the world is as important as the people who live in it. We are committed to making responsible decisions that help people and preserve the planet for future generations.” Its mission includes giving and volunteerism. Stryker partners with causes like Operation Smile and was listed as #12 on Forbes’ 2019 Best Employers for Women list.

Stryker’s current market segments include:

• Orthopedics (including reconstructive and trauma implants and related products)
• MedSurg (including surgical equipment and navigation technology, endoscopic and communications systems, emergency medical equipment, patient handling, intensive care disposable products, remanufactured medical devices and other related products)
• Neurotechnology and Spine (including neurovascular products, spinal implant systems and other related products)

Stryker’s products also include implants used in joint replacement or trauma surgeries, and other products that are used in various medical specialties.

Mobius and Cardan Robotics

Shirley, Massachusetts-based Mobius Imaging was founded in 2008. It develops, manufactures and markets Airo TruCT, a mobile, real-time, intra-operative CT imaging system. Airo supports clinical procedures in spine surgery, brain surgery, orthopedic surgery, surgical navigation, emergency department, and radiation oncology.

The FDA first granted 510(k) clearance to an earlier version of the Airo CT system in 2013 and added a pediatric indication for the product last year.

Mobius Chief Executive Officer Eugene Gregerson described the Airo CT as “designed to give surgeons immediate access to fresh CT images on demand while not disturbing the surgical theater…With its very large bore and small footprint, the Airo is optimized for intraoperative use.”

Mobius’ sister company Cardan Robotics, founded in 2015, is currently developing robotic and navigation technology for spinal and interventional radiology procedures. Cardan Robotics states that “it is working with top surgeons to develop innovative technology to set the future direction of spine surgery.”