Orthofix, Stout Medical sign licensing, R&D deal

Boston medical devices firm Orthofix International NV has worked out a 15-year license and development agreement with Stout Medical Group LP, an orthopedic and cardiovascular medical devices company in Pennsylvania.

The deal calls for Orthofix to conduct development and marketing of an expandable vertebral body replacement (VBR) and corpectomy device, a tool for surgical removal of the vertebra. The device would be used to treat tumors and trauma in spinal applications, offering a less invasive approach, Orthofix president and CEO Alan Milinazzo said in a prepared statement. According to the agreement, Orthofix retains exclusive global licensing rights for the VBR device, which Orthofix reports as having a $77 million market in the U.S.

In addition to spinal device applications, Orthofix (Nasdaq: OFIX) also develops medical devices for orthopedics and sports medicine. The company has developed research and development partnerships with other organizations, including the Muscoloskeletal Transplant Foundation, Rutgers University, the Orthopedic Research and Education Foundation and the National Osteoporosis Institute.