Israeli Investor Nets 165% IRR on OrthoSpin Sale to Synthes

Misgav, Israel-based The Trendlines Group Ltd. has announced that Synthes GMBH, part of DePuy Synthes (the orthopedics company of Johnson & Johnson), has acquired all of its 26.9%-owned portfolio company OrthoSpin Ltd., based in Yoqneam, Israel.

Synthes has acquired OrthoSpin for $79.5 million in cash, payable in full upon closing. After expenses, the total net proceeds for Trendlines will be $15.8 million. Per the press release, this represents “a 165% internal rate of return (IRR) on Trendlines’ total cash investment in OrthoSpin of US$1.3 million.”

As of June 30, 2021, Trendlines reported that the fair value of its holdings in OrthoSpin was approximately $6.6 million. According to the press release, for the fiscal year ending December 31, 2021, “Trendlines will report a US$9.2 million gain from the acquisition.”

OTW spoke with Trendlines Chair and CEO Todd Dollinger about the company’s decision to sell OrthoSpin. Dollinger told OTW, “While The Trendlines Group is a full lifecycle investor, investing at all stages in our companies, from inception through growth, we are, first, ‘company creation’ investors, starting companies with inventors, research institutions, and with our inhouse innovation team at Trendlines Innovation Labs.”

Dollinger continued, “While we have taken several companies public and sold companies to Baxter, Teleflex, B. Braun, Johnson & Johnson, and other giants, our mission focus of ‘investing to improve the human condition’ leads us to place our companies in the hands of larger companies that have the distribution networks required to help more people, faster.”

When asked about what sets OrthoSpin apart from its competitors, Dollinger explained to OTW, “There is no other FDA-cleared fully robotic external fixator in the world.” For OTW’s coverage of the robotic external fixation systems, see “FDA Clears 2nd Generation Robotic Fixation System” and “Auto Adjusting External Fixation System Cleared.”

Dollinger also discussed Trendlines’ goals for the upcoming year, informing OTW, “Trendlines is wholly focused on its mission of investing to improve the human condition and, accordingly, we will continue to establish new companies at our offices in Israel and Singapore and support and invest in those companies to bring products to market.”

Dollinger continued, “Orthopedics and spine is a key area of investment for Trendlines, and we will continue to work with our partners in the U.S., Europe, Japan, and China to advance our work as a rare ‘day-one’ investor in the field.”