Mazor Robotics CEO Suspected Of Insider Trading
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. At the time, the deal was that Medtronic received control of the distribution of Mazor’s spinal surgery systems in the United States. In September, the two companies announced Medtronic would have global control of the distribution. 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. Founder in 2001, Mazor Robotics develops and manufactures robotic guidance systems for brain and spine surgery.