Musculoskeletal News Roundup 11-Nov-10
BY LAUREN UZDIENSKI, NOVEMBER 11, 2010
Earnings
Alphatec Holdings, Inc., the parent company of Alphatec Spine, Inc., announced financial results for the fiscal quarter ended September 30, 2010. Among the highlights for the quarter, the company achieved U.S. revenues of $30.0 million, representing 3% year-over-year growth on a pro forma basis; launched PureGen, the company's Osteoprogenitor Cell Allograft with the first case completed in September; and strengthened the U.S. sales network with the addition of several independent distribution agents and direct representatives in key strategic markets. Net loss for 3Q:10 was $3.8 million, or $0.04 per share, compared with a net loss of $1.3 million, or $0.02 per share in 3Q:09.
Anika Therapeutics reported 3Q:10 consolidated product revenue of $13.2 million, up 31% over the year ago period; excluding sales from Fidia Advanced Biopolymers, revenue increased by 14%. The company attributed sales growth to the ORTHOVISC product line as well as international sales of MONOVISC. Net income for 3Q:10 was $1.2 million, or $0.09 per diluted share, which compares with $1.5 million, or $0.13 per diluted share, in 3Q:09.
China Kanghui Holdings reported 3Q:10 revenues of RMB 63.6 million ($9.5 million), up 34% over the year-ago period and beating estimates by RMB 5.4 million ($0.8 million). Trauma sales were up 41%; spine sales were up 24%; OEM revenues were up 24%; and among "proprietary products," domestic sales increased by 23% and international sales increased by 121% over 3Q:09. Net income for the quarter was RMB 26.6 million ($4.0 million), or RMB 0.73 ($0.11) per share, which compares to RMB 24.4 million ($3.6 million), or RMB 0.09 ($0.01) per share, in 3Q:09. EPS was in line with estimates.
TranS1 reported 3Q:10 revenues of $6.3 million, down 8% over 3Q:09 and missing estimates by $0.6 million. The company attributed the decline in sales to "seasonal weakness" and a "higher rate of insurance denials for lumbar surgery due to medical necessity and ongoing AxiaLIF physician reimbursement pressures." There were 589 TranS1 procedures performed globally during the quarter. Net loss for the quarter was $3.8 million, or $0.18 per share, which compares to a net loss of $5.6 million, or $0.27 per share, in 3Q:09. Analysts had forecast a loss of $0.24 per share.
M&A
Synthes announced the acquisition of the Anspach Effort, a manufacturer of high-speed surgical power tools for use in orthopedic, neuro and ENT procedures. The transaction will enable Synthes to create a dedicated power tools division, which they anticipate will bring in $200 million in annual sales.
Funding
Grand Industries announced that they have entered into a deal with Redrock Trading Partners to "to help seek capital to grow and expand its dental and medical products business."
MAKO Surgical closed a public offering of 6,325,000 shares of its common stock, which generated net proceeds of approximately $59.2 million for the company after deducting expenses. The company plans to use the funds to support commercialization, sales, marketing and general administrative activities, for research and product development activities and to fund working capital and other general corporate purposes. Piper Jaffray & Co. acted as the sole underwriter for the offering.
Product Introduction and Update
ConforMIS launched the iDuo G2, which the company calls the next generation of its bicompartmental knee resurfacing system. Per the press release, the system features "latest implant innovations and instrument enhancements", including an engineered patellofemoral joint to correct deformity, a wear-optimized implant design and improved surgical instrumentation and iView planning images.
Stryker announced that data from the National Joint Registry of England and Wales demonstrated that the company's Triathlon Knee had the lowest three-year-revision rate compared to other frequently-used knee systems.
Legal
MicroAire Surgical Instruments and Arthrex entered an agreement to settle a suit accusing Arthrex of patent infringement and breach of contract over a MicroAire technology for the minimally-invasive treatment of Carpal Tunnel Syndrome. As a result of the agreement, MicroAire will license its patented ECTR technology to Arthrex for an undisclosed fee and both companies will maintain MicroAire's practice of requiring surgeon training for this procedure.
Investigation
Stryker disclosed in its 10-Q that during 3Q:10, the company received two separate DOJ subpoenas related to sales and marketing of the company's OtisKnee device and the Stryker PainPump.
Distribution
Kensey Nash signed an agreement with Arthrex, Inc. for the European distribution of Kensey Nash's cartilage repair device (CRD). The CRD is a synthetic bioresorbable implant that features b -TCP suspended within a porous polymer scaffold. The device received the CE mark in February 2010.
Small Bone Innovations entered into an exclusive three-year agreement whereby Biomet Nederland will distribute SBi's products in the Netherlands.
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