The Trendlines Group has divested its stake in one of its portfolio companies focusing on orthopedics to Synthes, a subsidiary of Johnson & Johnson.
The portfolio company, OrthoSpin, is sold to the US healthcare giant for US$79.5 million.
Israel-based Trendlines, which is listed on the SGX, will receive net proceeds of US$15.8 million for its 26.9% stake.
Trendlines has thus far invested US$1.3 million in cash into OrthoSpin and as at June 30, carries this investment at US$6.6 million on its books. The gain will give Trendlines an internal rate of return of 165%.
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For the current year ending Dec 2021, Trendlines will book a gain of US$9.2 million from the sale, which comes on top of a gain of US$3.9 million it had already booked in 1HFY2021.
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OrthoSpin has created a “digitally-enabled” strut system which can help correct limb deformities. The adjustments can be made automatically and more frequently, thereby doing away with complex, manual adjustments.
OrthoSpin’s latest device received FDA clearance in Jan this year and has completed initial clinical cases in the US and Israel.
Trendlines shares closed Nov 3 at 11 cents, up 0.96% for the day and up 16.67% year to date.