Mazor Robotics Ltd’s (TASE: MZOR; Nasdaq: MZOR) share price jumped 35% on Nasdaq over the past few days after announcing the signing of strategic commercial and investment agreements with Medtronic – the world’s largest medical device maker.
The agreements include an investment of tens of millions of dollars in Mazor shares – which trade at a market cap of $281 million – by Medtronic. After the announcement, Mazor CEO Ori Hadomi told “Globes” about his vision for the company’s future following the new agreement.
Until now, Mazor has – to a large extent – been a one-trick pony, relying on its robotic guidance system for spine surgery. Though the company’s product sold well ($26 million in 2015) and its income increased from year to year (23% from 2014 to 2015), it did not present a framework for a breakthrough and continued to incur losses.
It appeared to experts the company will be snapped up by one of the leading medical device companies and be integrated into its operations. But while acquisition is not off the table, the company now has other options. Though the new agreement determines that Medtronic will gradually take responsibility for marketing the next-generation Mazor spine surgery product – as the existing system is phased out – Mazor will still continue to participate in the marketing process and be allowed to develop in other areas.
