Musculoskeletal News Roundup 20-Mar-08
BY LAUREN UZDIENSKI, MARCH 20, 2008
Earnings
Biomet announced preliminary FQ3:08 revenues of $603.1 million, an increase of 14% over the year-ago period. By segment, reconstructive device sales increased 19% worldwide and 13% in the U.S.; knee sales increased 24% worldwide and 21% in the U.S., driven by the Oxford Partial Knee System and the Vanguard Complete Knee System; hip sales increased 16% worldwide and 7% in the U.S., attributable to demand for the Taperloc Hip Stem and alternative-bearing acetabular systems; dental increased 11% worldwide and 5% in the U.S.; other reconstructive products including extremities, bone cements, bone substitute materials and biologics increased 21% worldwide and 6% in the U.S.; external fixation sales decreased 4% worldwide and were flat in the U.S.; internal fixation sales increased 5% worldwide and 5% in the U.S., and spinal product sales were flat worldwide and increased 11% in the U.S.
M&A
Orthofix sold all of the intellectual property, business assets and distribution rights related to subsidiary Breg Inc.'s Pain Care line of ambulatory infusion pumps. LMA International N.V. has agreed to pay approximately $5.9 million in cash upon closing of the transaction and an additional $1.0 million based on the attainment of certain revenue milestones.
Funding
Axial Biotech, Inc. closed a $6.0 million tranche of its Series B financing. The financing was led by Johnson & Johnson Development Corporation, with participation by vSpring Capital and Ohio Biotech Group. Additionally, the company announced that it has met "major scientific milestones" in its development of a prognostic test for Adolescent Idiopathic Scoliosis.
Product Introduction and Update
Globus Medical launched the NIKO Corpectomy Spacer System. According to the press release, the system features multiple profile and height options, which may be able to save OR time by eliminating the assembly time associated with stackable cages or the cutting required with mesh cages.
Mechanical testing has shown that Titan Spine’s ENDOSKELETON TA Titanium Vertebral Body Replacement performed "extremely well" against competing PEEK, allograft and titanium-threaded devices, according to the company. The press release states that the product's "dual acid-etched surface and wide apophyseal footprint design" enabled it to to resist pull-out stress in a series of tests.
Investigations
The law firm of Schatz Nobel Izard P.C. is investigating possible securities law violations by ArthroCare. The firm is investigating whether ArthroCare materially overstated its financial results through the improper recognition of revenue from DiscoCare, Inc. and Device Reimbursement Services.
License Agreements
Alphatec Holdings, Inc. announced that the company's wholly owned subsidiary, Alphatec Spine, Inc. and Stout Medical Group LP. entered into a License Agreement that provides Alphatec Spine with a worldwide license to develop and commercialize Stout's expandable interbody/vertebral body replacement technology. The expandable interbody/vertebral body replacement technology utilizes a unique geometric design configuration that can be expanded once the device is placed into the disc space and is designed to be used in percutaneous, mini-open and open delivery procedures.
Operations
ArthroCare introduced its new Mobile Surgical Skills Center. The company calls the center "a fully operational, five-station skills center for sports medicine related surgical training and physician education purposes."
