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Orthofix International (NASDAQ:OFIX) enters into an option agreement with privately-held eNeura that provides Orthofix with a 18-month option to acquire eNeura. Under the terms of the agreement, Orthofix will provide a $15M collateralized loan to support the commercialization of Spring TMS in the U.S. and Europe. If Orthofix exercises its option, it will pay $65M and eNeura will repay the unpaid principal of the loan. Orthofix may make future milestone and royalty payments to eNeura.
Spring TMS (Transcranial Magnetic Stimulation) is a device for the treatment of pain associated with migraine with aura. The FDA cleared it via the 510(k) pathway in May 2014.
Orthofix President and CEO Brad Mason says, "This agreement underscores Orthofix's commitment to pursue new growth opportunities in its BioStim strategic business unit that leverage our core competencies in pulsed electromagnetic field (PEMF) product design and manufacturing as well as our third party billing expertise. We believe eNeura's exciting application of electromagnetic field technology delivers a therapy that addresses a significant unmet need for patients and clinicians in the treatment of migraine headache."