Musculoskeletal News Roundup 3-Apr-08
BY LAUREN UZDIENSKI, APRIL 3, 2008
Earnings
aap Implantate reported 2007 revenue of EUR 28.0 million ($41.24 million), an increase of 52% over 2006. Net profit for the year was EUR 1.5 million ($2.21 million), down from EUR 1.6 million ($2.36 million) in 2006, which the company said was due to one-off deferred tax expenses. Among segments, trauma and orthopedic sales grew 26%, aided by the acquisition of Fame Medical Group. The biomaterials segment, which comprises over 70% of aap's sales, saw organic growth of 65%.
Langer, Inc. reported net sales of $15.38 million for 4Q:07, up from $8.0 million in the year-ago period, which was attributed to the acquisitions of Twincraft and Regal. Net loss for 4Q:07 was approximately $2.05 million, or $0.18 per fully diluted share, compared to a net loss of approximately $2.40 million, or $0.24 per fully diluted share, for the year-ago period. CEO Gray Hudkins called 2007 "disappointing" and said the company is continuing its review of strategic alternatives.
MAKO Surgical Corp reported 4Q:07 revenue of $0.42 million, up from $0.03 million in 4Q:06, which the company says was generated from MAKOplasty procedures. 4Q:07 net loss applicable to common shares was approximately $8.4 million, or $4.53 per common share, increasing from $4.5 million, or $2.88 per common share, for the year-ago period.
ReGen Biologics reported 2007 revenue of $0.99 million, an increase of 68% over the prior year. Ex-U.S. sales of the collagen scaffold Menaflex, RGBI's meniscal implant, were $0.55 million, up 140% over 2006. At year-end ReGen had $4.1 million in cash and investment balances, or six to seven months' cash, and is evaluating its financing options. Additionally, the company is continuing to pursue its appeal of the FDA's NSE decision regarding its product.
M&A
Wright Medical Group, Inc. completed its acquisition of INBONE Technologies, Inc., which the company notes is its seventh foot and ankle business development initiative in the past year. Among the financial terms were an initial cash payment of $24.0 million, guaranteed minimum future payments of $3.7 million and potential additional performance-based cash payments. INBONE manufactures the INBONE Total Ankle System and the INBONE Intra-osseous Fusion Rod and Plate System.
Distribution
ReGen Biologics signed a distribution agreement and initiated marketing for its products, including the Menaflex collagen meniscus implant, in the United Kingdom. ReGen products will be marketed and distributed through Cardiff-based Hospital Innovations Ltd.
Tornier, Inc. has entered into an exclusive distribution agreement with LifeCell Corp. whereby the two companies will develop a new tissue matrix for certain orthopedic soft tissue repair applications. Tornier will distribute the product under the "Conexa" private label brand. Currently, LifeCell markets and distributes its tissue matrix for general soft tissue repair applications as the Strattice Reconstructive Tissue Matrix.
Appointments
Alphatec Holdings, Inc. announced that seasoned sales and marketing executive Gary Fredericks has agreed to join the company as Vice President of Corporate Accounts. In this newly-created role, Alphatec will leverage Mr. Fredericks' 30-plus years of experience in the medical device industry to develop and implement a long-term corporate accounts program that includes developing relationships with Integrated Delivery Networks (IDNs) and Group Purchasing Organizations (GPOs).
Alphatec Holdings, Inc. announced that veteran executive Mitsuo Asai has agreed to join the company as President of Alphatec Pacific, Inc. ("API"), a wholly owned subsidiary of Alphatec Holdings, Inc. "Mr. Asai brings an extensive background in leadership, and his emphasis on team building is exactly what Alphatec was looking for as we continue to expand our sales and distribution reach throughout Japan and the rest of Asia," said Dirk Kuyper, Alphatec's President and Chief Executive Officer. "We look forward to working with Mitsuo to leverage his talents to grow Alphatec in this region and help us capitalize on our wide platform of spinal solutions targeted at the aging population. Asia is a key market for some of our focus areas including osteoporosis, vertebral compression fractures, stenosis and other spinal deformities."
Exactech, Inc. appointed Daniel Berdat Vice President of International Sales and Marketing. Berdat will assume responsibility for more than 30 international markets, including Exactech's independent distributors and direct operations in China, Canada, the United Kingdom and Japan. Additionally, Berdat will be responsible for strategic planning and prioritization of new market entries in all international markets and develop plans for increasing international market penetration. Previously, Berdat was general manager of Plus Orthopedics China.
Interventional Spine, Inc. appointed Harold A. Hurwitz to the newly-created position of Chief Financial Officer. According to the press release, Hurwitz has more than 20 years of public accounting experience with Coopers & Lybrand (now part of PricewaterhouseCoopers) and has served as CFO at Micro Therapeutics, Inc. (now a division of ev3, Inc.)
