December 4, 2017 –Mazor Robotics CEO Ori Hadomi has been the subject of questioning during an ongoing investigation by the Israel Securities Authority, which claims it has reason to believe insider trading took place around the time of a May 2016 agreement with medical device maker Medtronic.
Founded in 2001, Nasdaq-listed Mazor develops and manufactures robotic guidance systems for brain and spine surgery. In May 2016, the company signed a strategic agreement with medical device maker Medtronic PLC, under which the latter received control of the distribution of Mazor’s spinal surgery systems in the U.S. In September, the two companies announced that Medtronic would assume worldwide control of the distribution of the systems and invest an additional $40 million in Mazor, bringing its overall investment to $74 million.
They would also invest an additional $40 million in Mazor, bringing the company’s total investment to $74 million. In May 2017, the Israel Securities Authority raided offices of Mazor after a substantial suspicion arose that information was leaked to associates prior to the public announcement, leading them to buy Mazor securities before everyone else. Senior executives were questioned in the raid and it has now become apparent that Hadomi was also questioned in the investigation as a suspect. Investors were told of the investigation in June 2017.
No formal indictments have been submitted so far. If Hadomi was to be found guilty, it would likely severely damage Mazor’s image and business. So far, the Caesarea-based surgical robotics company has not been hurt by the investigation, as Globes reports that since the agreement, its share price has “soared by almost 400 percent.” The strategic agreement combined with the significant rise in the company’s share price and revenue have made it one of Israel’s most successful medical device companies ever, according to Globes.
Mazor Robotics (TASE: MZOR; NASDAQGM: MZOR) believes in healing through innovation by developing and introducing revolutionary technologies and products aimed at redefining the gold standard of quality care. Mazor Robotics Guidance System enables surgeons to conduct spine and brain procedures in an accurate and secure manner. For more information, please visit www.MazorRobotics.com.