SRGA - Surgalign settles litigation with RTI over OEM business sale in 2020; shares fall 20%

• Surgalign ( NASDAQ: SRGA ) on Wednesday said it had entered into a global settlement agreement with RTI Surgical relating to the sale of its original equipment manufacturing (OEM) business and its subsequent relationship with the company.
• However, shares of the company fell 20% to $4.80 in morning trading despite the news.
• In 2020, SRGA, then known as RTI Surgical, sold off its OEM business for $440M , following which RTI became a privately-held company while the remaining surgical implant business became Surgalign ( SRGA ).
• "As part of the settlement, the parties have amended various agreements, including the distribution agreements for spinal implants and biologics," SRGA said in Tuesday's statement .
• SRGA said the amendments released the company from the obligation to cure a purchase shortfall for the current year and reduced the minimum annual purchase requirements.
• RTI continues to provide products distributed by SRGA in the U.S. and in about 50 other countries.

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