Artificial Intelligence Technology Will Enable Computers to Autonomously Identify and Segment Neural Structures in Medical Images and Provide Reference Information Regarding Pathological States
DEERFIELD, Ill., Jan. 05, 2022 (GLOBE NEWSWIRE) — Surgalign Holdings, Inc. (NASDAQ: SRGA), a global medical technology company focused on elevating the standard of care through the evolution of digital health, today announced it has acquired an equity interest in Inteneural Networks Inc. (“INN”), and its proprietary artificial intelligence (AI) technology for autonomously segmenting and identifying neural structures in medical images and helping identify possible pathological states. The Company will also have the ability to acquire the remainder of INN’s outstanding equity interests upon the achievement of certain regulatory, developmental, and revenue-based commercial milestones. In June of 2021, the Company and INN entered into a strategic collaboration agreement during which time the Company evaluated INN’s technology for future integration within the Company’s digital platform.
“Our work with the team at INN has allowed us to fully appreciate the power of their AI technology and recognize this transaction will advance the vision of both organizations as we work to become a key player in applying AI and machine learning (ML) to healthcare,” said Terry Rich, Surgalign’s president and chief executive officer. “This combination brings another foundational piece to our development efforts and accelerates our work to bring intercranial functionality to the HOLO™ technology platform. This marks our first of many expansions outside of spine surgery and the operating room.”
INN is developing technology that harnesses ML and AI to autonomously and accurately identify and segment neural structures in medical images and integrate specific reference information regarding possible pathological states to physicians caring for patients. This technology could have future applications in neurosurgery as well as the potential to address a wide variety of potential disorders, including dementia, autism, tumors, aneurysm, stroke, and neurovascular structures using magnetic resonance imaging and computed tomography platforms.
The integration of INN’s innovative ML and AI technologies positions the Company as a leader in intelligent digital health.
By bringing INN’s intercranial capabilities to the HOLO platform, the Company can expand the applicability of HOLO into significant segments beyond spine, in particular neurosurgery.
Importantly, this transaction materially contributes to the Company’s mission to improve patient’s lives through better outcomes.
The synergies in the research and development and eventual commercial functions should provide for a particularly efficient integration of INN’s technology and talent.
“Both HOLO and INN are based on technologies that incorporate highly efficient AI approaches. I am not aware of comparable AI technologies on the market today. The combination of these two technologies has the potential to make Surgalign an AI powerhouse and one of the most exciting and promising AI companies in healthcare,” said Professor Paul Lewicki PhD, a pioneer in big data learning/data mining and co-founder and President of INN.
“The potential of combining these two independent technology platforms would give Surgalign the best of both worlds in terms of deploying a complete pre-, intra-, and post-operative digital solution,” said Kris Siemionow, MD, PhD, and co-founder and CEO of INN.
On December 30, 2021, the Company acquired 42 percent of the outstanding equity of INN for $21 million, consisting of $5 million in cash, promissory notes of approximately $10.6 million and the Company’s common stock valued at approximately $5.4 million. Upon achievement of certain regulatory, developmental, and revenue-based commercial milestones, the Company will have the ability to acquire the remaining 58 percent of INN in three equal tranches through 2027. The total consideration payable by the Company for 100 percent of INN’s outstanding equity interests, assuming the achievement of all milestones, would be $79 million. The Company will initially receive a non-exclusive royalty-free license to the INN technology. Upon the future acquisition of a majority of INN’s outstanding equity interests, the license to INN’s technology would become perpetual.
“This deal provides a significant technological impact to our digital health portfolio as we invest in our long-term vision for HOLO,” said Marc Mackey, Executive Vice President of Digital Surgery at Surgalign. “Ultimately, this transaction adds capabilities to our portfolio that otherwise would have taken a large team of employees several years to achieve. It’s a huge step forward towards realizing our goal of becoming a leader in applying AI & ML technology to deliver better healthcare.”
About Inteneural Networks Inc.
Inteneural Networks Inc. is a Chicago-based medical high-tech company, specializing in AI and Big Data Learning analysis of brain imaging. It was founded in 2017 by experienced scientists and high-tech investors: Professor Paul Lewicki PhD, a pioneer in data mining and big data learning, and founder and CEO of Statsoft (acquired by Dell Technologies Inc.), and Dr. Kris Siemionow MD, PhD, a surgeon who specializes in high-tech imaging databases and surgical applications. Lewicki and Siemionow are the founders of the Holosurgical platform. Lewicki currently serves on the Board of Directors for Surgalign and Siemionow is the Company’s chief medical officer. Inteneural Networks Inc. products and services are not available for sale in the United States.
About Surgalign Holdings, Inc.
Surgalign Holdings, Inc. is a global medical technology company committed to the promise of digital surgery and is building out its digital health platform to drive transformation across the surgical landscape. Uniquely aligned and resourced to advance the standard of care, the company is building technologies surgeons will look to for what is truly possible for their patients. Surgalign is focused on bringing surgeons solutions that predictably deliver superior clinical and economic outcomes. Surgalign markets products throughout the United States and in more than 50 countries worldwide through an expanding network of top independent distributors. Surgalign, is headquartered in Deerfield, IL, with commercial, innovation and design centers in San Diego, CA, Warsaw and Poznan, Poland, and Wurmlingen, Germany. Learn more at www.surgalign.com and connect on LinkedIn and Twitter.
Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. The forward-looking statements are not guarantees of future performance and are based on certain assumptions including general economic conditions, as well as those within the Company’s industry, and numerous other factors and risks identified in the Company’s most recent Form 10-K and other filings with the SEC. Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Important factors that could cause actual results to differ materially from the anticipated results reflected in these forward-looking statements include risks and uncertainties relating to the following: (i) risks relating to existing or potential litigation or regulatory action arising from the previously announced SEC and internal investigations and their findings; (ii) the identification of control deficiencies, including material weaknesses in internal control over financial reporting and the impact of the same; (iii) potential reputational damage that the Company has or may suffer as a result of the findings of the SEC and internal investigations and related litigation; (iv) general worldwide economic conditions and related uncertainties; (v) the continued impact of the COVID-19 novel coronavirus pandemic and the Company’s attempts at mitigation, particularly in international markets served by the Company; (vi) the failure by the Company to identify, develop and successfully implement its strategic initiatives, particularly with respect to its digital surgery strategy; (vii) the reliability of our supply chain; (viii) our ability to meet obligations, including purchase minimums, under our vendor and other agreements; (ix) the duration of decreased demand for our products; (x) whether or when the demand for procedures involving our products will increase; (xi) the Company’s access to adequate operating cash flow, trade credit, borrowed funds and equity capital to fund its operations and pay its obligations as they become due, and the terms on which external financing may be available, including the impact of adverse trends or disruption in the global credit and equity markets; (xii) our financial position and results, total revenue, product revenue, gross margin, and operations; (xiii) failure to realize, or unexpected costs in seeking to realize, the expected benefits of the Holo Surgical, Inc. (“Holosurgical”) and INN acquisitions, including the failure of Holosurgical’s and INN’s products and services to be satisfactorily developed or achieve applicable regulatory approvals or as a result of the failure to commercialize and distribute its products; (xiv) the failure to effectively integrate Holosurgical’s and INN’s operations with those of the Company, including: retention of key personnel; the effect on relationships with customers, suppliers, and other third parties; and the diversion of management time and attention to the integration; (xv) the number of shares and amount of cash that will be required in connection with any post-closing milestone payments, including as a result of changes in the trading price of the Company’s common stock and their effect on the amount of cash needed by the Company to fund any post-closing milestone payments in connection with the acquisitions; (xvi) the effect of the recent resignation of our auditor and our ability to successfully onboard a new auditor; (xvii) the continuation of recent quality issues with respect to our global supply chain; (xviii) the effects of recent resignations from our Board of Directors and executive leadership team, including our ability to find qualified candidates to fill those vacancies; (xix) the effect and timing of changes in laws or in governmental regulations; and (xx) other risks described in our public filings with the SEC. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. Each forward-looking statement in this communication speaks only as of the date of the particular statement. Copies of the Company’s SEC filings may be obtained by contacting the Company or the SEC or by visiting Surgalign’s website at www.surgalign.com or the SEC’s website at www.sec.gov. We undertake no obligation to update these forward-looking statements except as may be required by law.
Investor and Media Contact
Markets have reeled since the Federal Reserve announced, through the release of the December minutes, that the central bank would like to take a big whack at its $9 trillion balance sheet rather than keep it at that lofty level. Value stocks, they argue, will continue to be boosted by the transition from quantitative easing to quantitative tightening, as the Fed pivots from fighting deflation to fighting inflation. By and large, the Goldman team says most of the moves in the market have been explained by fundamentals, but it says some defensive sectors, including food and beverages, household goods and personal products, may have rerated too much, while semiconductors may have sold off by too much.
The precious-metals miner provided an update on reserves at its main mine, and it was not a pleasant read.
The world's most famous glassmaker just beat earnings — and promised to do it again next quarter, too.
For one thing, Upstart, like most other high-growth technology stocks, has been beaten down recently, and that's the group that is rebounding the most today. With that said, there is some company-specific news out of Upstart. The company announced that it has added Corning Credit Union to its personal lending partners in the Upstart Referral Network, which should help keep its lending volume moving higher in 2022.
Yahoo Finance Live's Julie Hyman and Brian Sozzi discuss fourth quarter earnings for Boeing and how the stock is reacting.
Every investor in Alibaba Group Holding Limited ( NYSE:BABA ) should be aware of the most powerful shareholder groups…
(Bloomberg) — Jeremy Grantham got the market’s attention with his “super bubble” call on U.S. stocks. Now he wants to get an even more alarming and urgent message out, one his critics may find harder to accept. Most Read from BloombergStock Rebound Fails and Futures Plunge on Earnings: Markets WrapA Nor’easter Approaching New York Risks Becoming a Bomb CycloneMark Zuckerberg’s Stablecoin Ambitions Unravel With Diem Sale TalksNvidia Quietly Prepares to Abandon $40 Billion Arm BidTech Giants Rall
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is one of the world's greatest investors. Between Dec. 31, 1964 and Dec. 31, 2021, he oversaw the creation of more than $600 billion in market value and led Berkshire's Class A shares (BRK.A) to aggregate gains in excess of 3,600,000%! Of the more than three-dozen securities Berkshire Hathaway owns in its $350 billion investment portfolio, three stand out as wholly avoidable in 2022.
JoAnne Feeney, Advisors Capital Management partner and portfolio manager, joins Yahoo Finance Live to discuss Microsoft earnings, software stocks, and the outlook for tech as the Fed prepares its policy decision today.
Former President Donald Trump is starting a social media network and streaming service called Truth Social and TMTG+, respectively, taking the companies public under Trump Media & Technology Group in a SPAC merger with Digital World Acquisition (NASDAQ: DWAC). Trump's headbutting with large media companies has been well-publicized, including his banishment from social media platforms like Twitter and Facebook (owned by Meta Platforms).
Investors expect higher profits than Wall Street has penciled in because that is what usually happens. It could take more to get the stock to rise.
The market has given investors a gift with these three stocks that used to trade for more than $100.
On yet another "red" day for stock markets, marijuana investors saw their stocks tumble right along with the rest of the Nasdaq. In a press release early this morning, Hexo gave investors an update on its strategic plan entitled "The Path Forward," explaining how Hexo — shares of which traded above $30 just a couple of years ago, but now fetch just $0.50 — intends to regain its mojo and get its share price moving higher once again. New product launches appear key to Hexo's plan, as the company launches sales of a "transdermal cream and a CBD-forward body lotion," and also a new line of "gummy confection called Redebles."
Online sports betting can stage a strong comeback this year, making DraftKings a solid wager, according to analysts at Morgan Stanley. Analyst Thomas Allen upgraded DraftKings (ticker: DKNG ) to an Overweight from Equal Weight. “While we and the market have been focused on near- to medium-term profit concerns, we believe at the current price one should not ignore that DKNG is a leading market share player in what will be a very large profitable market,” Allen wrote in a research note on Wednesday.
Yahoo Finance Live's Emily McCormick and Adam Shapiro break down several of the trending stocks attempting to correct themselves during this volatile trading week.
Recent market volatility is enough to make your head spin, and can cause plenty of confusion for retail investors seeking a solid market strategy. It’s tempting to look to the experts, but that raises another question: which experts are the best to follow? Probably the best experts to follow are the corporate insiders. These are company officers, in upper management or the Board of Directors, who have both direct access to their company’s inner workings and a responsibility to their shareholders
Elon Musk has been driving Telsa's new Cybertruck and he thinks it's 'awesome.' An electric truck opens a substantial new market for Tesla.
The central bank, which has held short-term interest rates at near-zero since March 2020, is not anticipated to raise interest rates at the conclusion of Wednesday's meeting.
While every market advisor will tell you never to try to ‘time’ the market, timing is still important for success. Investors need to buy into low prices, and to do that, they need to know when prices are low. This doesn’t necessarily mean low in absolute dollar terms, but low relative to a stock’s recent past performance. In recognizing that lower price range, investors can turn to Wall Street’s pros for help. The analysts have been busy lately, picking out stocks that are in their lower price r
Freeport-McMoRan earnings for Q4 and guidance for 2022 came in mixed. FCX stock, a top copper play, slipped early Wednesday.