Alphatec Spine Completes Asset Acquisition of Irvine, CA-Based Phygen LLC
CARLSBAD, Calif., Nov. 7, 2012 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc.
(Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., announced today
that it has closed its acquisition of certain assets of Phygen LLC.
"We are very pleased and excited to close this important transaction and bring
these two companies together. It is truly a synergistic fit and a
transformational event for both organizations," said Les Cross, Chairman and
Chief Executive Officer of Alphatec Spine. "As I promised when I became CEO
earlier this year, Alphatec Spine is focused on becoming more market-driven
and customer-focused in order to strengthen sales and profitability. We are
taking steps to launch new products, enhance the productivity of our sales
force and distribution network, and target more surgeon-customers.
Simultaneously, we are supporting these activities with operational
improvements designed to lower our cost structure.
"With this transaction, we believe we have significantly strengthened our
capabilities to succeed with our strategy. Phygen should bring us an enhanced
product development process driven by their Scientific Advisory Board and a
broad portfolio of complementary products. We are eager to leverage the
strengths of both companies to deliver greater value to spine surgeons in
2013. In addition, I am pleased to welcome Tom Gardner and his experienced
leadership team to Alphatec."
Tom Gardner, Chief Executive Officer of Phygen, said "Phygen has over 100
active spine surgeons, many of whom have been directly involved in developing
new innovations and product enhancements that have enabled Phygen to establish
a broad and unique line of spinal implant solutions. This transaction will
provide Alphatec with access to these innovations. In addition, I feel as
though our engineering capabilities complement Alphatec's, which should
accelerate the cycle of innovation. At the same time, Phygen's member-surgeons
will have access to Alphatec's dynamic product line.
"A prerequisite for success in today's healthcare market is fast and
cost-effective product innovation. When the respective management teams
discussed the benefits of this transaction, we focused on the potential upside
of combining the innovation capabilities of the Phygen surgeons with the
engineering, manufacturing and distribution proficiencies of Alphatec. This
promises to be a very exciting time for the shareholders of both companies."
A description of the material terms of the transaction were set forth in a
Form 8-K that was filed with the SEC on October 25, 2012.
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 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
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 Alphatec
Spine's strategies to strengthen sales and earnings; Phygen's financial
contributions to Alphatec's financial results in 2013; Phygen synergies with
product development and engineering that shorten the product innovation cycle;
and reductions in the Company's manufacturing costs and operating expenses
from operational improvements. 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 materialization of the
anticipated benefits from the Phygen transaction; the uncertainty of success
in developing new products or products currently in Alphatec Spine's pipeline;
failure to achieve acceptance of Alphatec Spine's products by the surgeon
community, including the Phygen surgeons discussed in this press release;
failure to successfully implement streamlining activities to create
anticipated savings; failure to successfully begin in-house manufacturing of
certain products; failure to obtain FDA clearance or approval for new
products, or unexpected or prolonged delays in the process; 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 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:
Senior Director, Investor Relations
Alphatec Spine, Inc.
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