Alphatec Spine Receives Board Approval to Acquire Assets of Spine Implant Business
27 September 2012 - 8:00AM
Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of
Alphatec Spine, Inc. (the "Company"), announced today that its
board of directors has approved the Company's plans to acquire
certain assets of Phygen, LLC, a spinal implant manufacturer based
in Irvine, CA. The purchase price for the assets is approximately
$15.2 million in stock and cash. On August 7, 2012, Alphatec Spine
first announced that it had signed a letter of intent to acquire
the assets of the company.
"Since becoming CEO of Alphatec Spine earlier this year, our
growth strategy for 2012 and beyond includes a focus on new product
launches and acquisitions," said Les Cross. "We have since launched
new products such as our BridgePoint™ Spinous Process Fixation
System, acquired exclusive U.S. distribution rights to market a
synthetic bone growth biologic under our own brand name of Alphatec
NEXoss™ and we have plans to acquire certain assets of Phygen, LLC,
which we hope to close shortly. It is clear we are executing our
new business strategy."
Noted Neurosurgeon, Mark Renfro, M.D., a member of Phygen's
Board of Governors, stated, "Phygen is delighted by this
transaction with Alphatec. Upon closing, Phygen will look to
bring its innovative product development process, which has
a foundation in design input from active spine surgeons and
strategic direction from Phygen's Scientific Advisory Board, into
the Alphatec family. All in all, I believe that this proposed
transaction is a real win-win for Phygen and Alphatec."
Alphatec Spine said that it expects this transaction to
contribute approximately $15 million in revenue in 2013 and be
accretive to fully diluted GAAP earnings per share in 2013.
Additional details regarding the transaction will be provided if
and when the acquisition is closed. The closing of this transaction
is subject to the approval of a majority of the members of Phygen,
the execution of the definitive documents and customary closing
conditions set forth in the definitive documents.
About Alphatec Spine
Alphatec Spine, Inc. is a wholly owned subsidiary of Alphatec
Holdings, Inc. (Nasdaq:ATEC). Alphatec Spine is a medical device
company that designs, develops, manufactures and markets products
for the surgical treatment of spine disorders, primarily focused on
the aging spine. The Company's mission is to combine
world-class customer service with innovative, surgeon-driven
products that will help improve the aging patient's quality of
life. The Company is poised to achieve its goal through new
solutions for patients with osteoporosis, stenosis and other aging
spine deformities, improved minimally invasive products and
techniques and integrated biologics solutions. In addition to
its U.S. operations, the Company also markets its products in over
50 international markets through its affiliate, Scient'x S.A.S.,
via a direct sales force in France, Italy and the United Kingdom
and via independent distributors in the rest of Europe, the Middle
East and Africa. In Latin America, the Company conducts its
business through its subsidiary, Cibramed Produtos Medicos. In
Japan, the Company markets its products through its subsidiary,
Alphatec Pacific, Inc. In the rest of Asia and Australia, the
Company sells its and Scient'x's products through its and
Scient'x's distributors.
The Alphatec Holdings, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3520
Forward Looking Statements
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 that involve risks and uncertainty. Such statements are
based on management's current expectations and are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. Alphatec Spine cautions investors that there can be no
assurance that actual results or business conditions will not
differ materially from those projected or suggested in such
forward-looking statements as a result of various factors. Forward
looking statements include references to the timing, revenue
expectations and earnings accretion from the transaction described
in this press release. The words "believe," "will," "should,"
"expect," "intend," "estimate" and "anticipate," variations of such
words and similar expressions identify forward-looking statements,
but their absence does not mean that a statement is not a
forward-looking statement. The important factors that could cause
actual operating results to differ significantly from those
expressed or implied by such forward-looking statements include,
but are not limited to; the uncertainty of success in closing the
acquisition, which still requires the approval of a majority of
Phygen's members; failure to achieve or maintain continued
acceptance of Alphatec Spine's or Phygen's products by the surgeon
community, including without limitation to Alphatec's BridgePoint
system and Alphatec NEXoss products; failure to incorporate the
Phygen product development process into Alphatec's processes and
systems; failure to achieve anticipated future streamlining and
cost savings initiatives related to Alphatec Spine's business;
failure to successfully begin in-house manufacturing of certain
products; Alphatec Spine's ability to develop and expand its U.S.
and/or global revenues; continuation of favorable third party payor
reimbursement for procedures performed using Alphatec Spine's
products; unanticipated expenses or liabilities, including those
related to the transaction described in this press release, or
other adverse events affecting cash flow or Alphatec Spine's
ability to successfully control its costs or achieve profitability;
uncertainty of additional funding; Alphatec Spine's ability to
compete with other competing products and with emerging new
technologies; product liability exposure; failure to meet all
financial obligations in the Cross Medical Settlement or its credit
agreement; patent infringement claims and claims related to
Alphatec Spine's intellectual property. Please refer to the risks
detailed from time to time in Alphatec Spine's SEC reports,
including its Annual Report Form 10-K for the year ended December
31, 2011, filed on March 5, 2012 with the Securities and Exchange
Commission, as well as other filings on Form 10-Q and periodic
filings on Form 8-K. Alphatec Spine disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise, unless required by law.
CONTACT: Investor/Media Contact:
Mark Francois
Senior Director, Investor Relations
Alphatec Spine, Inc.
(760) 494-6610
mfrancois@AlphatecSpine.com
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