-License agreements are in lieu of proposed merger, which was terminated upon the signing of the license agreements - - Conference call scheduled for 4:30 p.m. Eastern time -
CARLSBAD, Calif., Jan 23, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Alphatec Holdings, Inc. (Nasdaq: ATEC), a spinal device company that provides customized products and a broad line of spine fusion solutions, announced today that it has signed three license agreements with Scient'x, S.A. to manufacture and distribute a suite of differentiated spinal surgery implants in the United States, including products for dynamic stabilization. The terms of the license agreements, which were not disclosed, require no external financing or share issuances by Alphatec or Scient'x. The signing of the license agreements with Scient'x is concurrent with the signing of a termination and release agreement between the two companies that cancels the proposed merger agreements dated September 27, 2006, under which Alphatec was to combine with Scient'x.
"These agreements provide Alphatec with patent rights and know-how related to Scient'x products including several dynamic stabilization products such as the market leading IsoBar system, which has been implanted in over 14,000 patients worldwide. The licenses also include a new and ground-breaking ALIF cage system with a securitized anterior PEEK plate to prevent implant migration," stated John Foster, Chief Executive Officer of Alphatec. "We believe our broadened product line will appeal to growing numbers of spine surgeons across the U.S. while at the same time creating additional pull- through demand for our existing products."
Mr. Foster continued, "In pursuit of our growth strategy, we will continue to develop, acquire and license leading technologies in the spine industry."
Conference Call Information
Management of Alphatec will host a conference call with analysts and investors at 4:30 p.m. Eastern time to discuss today's news. The conference call information is as follows: U.S. participants should dial 800-657-1263, and international callers should dial 973-633-8200. The passcode is 8363828. It is recommended that interested parties call in approximately 10 minutes before the start of the call.
A replay of the conference call will be available for 10 days. The replay number for U.S. callers is 877-519-4471, and the replay number for international callers is 973-341-3080. The replay passcode is 8363828.
About Alphatec
Alphatec is a medical device company focused on the design, development, manufacturing and marketing of products for the surgical treatment of spine disorders. Alphatec's principal product offerings are primarily focused on the U.S. spine fusion market, which is estimated to approach $3 billion in 2007, through its wholly-owned subsidiary, Alphatec Spine, Inc., and include a variety of spinal implant products and systems comprised of components such as spine screws, spinal spacers, and plates that offer multiple solutions to address patients' needs. In addition to Alphatec's U.S. presence, it also participates in the Japanese spine fusion and orthopedic trauma markets through its subsidiary, Alphatec Pacific, Inc. Alphatec's mission is to be a value-based leader in the spinal device market by providing unmatched service to and taking scientific direction from its surgeon customers. Alphatec does so through its unique in-house manufacturing facility in Carlsbad, California, that allows us to respond quickly to surgeon needs and to customize innovative products needed for spine fusion surgery.
Forward Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainty, including statements that the company believes (i) the ALIF cage system is ground-breaking, (ii) that its broadened product line will appeal to growing numbers of spine surgeons across the U.S. while at the same time creating additional pull-through demand for the company's existing products, (iii) that Alphatec will continue to develop, acquire and license leading technologies in the spine industry in pursuit of its growth strategy. 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 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, including, but not limited to, the following: Alphatec's ability to maintain its level of previously reported sales growth, Alphatec's ability to manage, develop and expand its spine fusion business in the United States and Japan, Alphatec's ability to expand and maintain a successful sales and marketing organization, continuation of favorable third party payor reimbursement for procedures performed using our products, unanticipated expenses or liabilities or other adverse events affecting cash flow or Alphatec's ability to achieve profitability, uncertainty of additional funding, uncertainty of success in developing any new products or acquiring or licensing leading technologies in the spine industry on terms acceptable to the company, failure to successfully introduce and develop new products, including products related to license agreements, failure to obtain FDA clearance or approval for particular devices, Alphatec's ability to compete with other competing products and with emerging new technologies within and outside of spinal fusion, product liability exposure, patent infringement claims and claims related to our intellectual property. Please refer to the risks detailed in Alphatec's quarterly report on Form 10-Q for the quarter ended September 30, 2006. We disclaim 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: Alphatec Spine, Inc.
Steven Yasbek
Chief Financial Officer
(760) 431-9286
SYasbek@alphatecspine.com
Noonan Russo
Matthew Haines
(212) 845-4235
Matthew.Haines@eurorscg.com
SOURCE Alphatec Holdings, Inc.
