CARLSBAD, Calif., Feb. 6, 2008 (PRIME NEWSWIRE) -- Alphatec Holdings, Inc. (Nasdaq:ATEC), a medical technology company focused on the design, development, manufacturing and marketing of products for the surgical treatment of spinal disorders, announced that the company's wholly owned subsidiary, Alphatec Spine, Inc. ("Alphatec Spine"), and Progressive Spinal Technologies LP., ("Progressive") entered into an exclusive worldwide license agreement that provides Alphatec Spine the right to commercialize Progressive's dynamic anterior cervical plate technologies. The technologies incorporate a unique self ratcheting mechanism that enables the dynamic anterior cervical plate to allow for axial settling in order to increase load sharing with the graft and thereby improve fusion rates. Similar to Alphatec's TRESTLE(tm) anterior cervical plate, the new dynamic plate combines a large window that enables graft site and end plate visualization with a slender profile for an aesthetic and anatomical union. Progressive, which was formed in early 2006, specializes in spinal implants and technologies for the orthopedics industry.
"The Trestle cervical plate is being extremely well received and this technology license provides a product solution for the rapidly growing dynamic cervical plating segment of the market, which is growing at 15% per year," said Dirk Kuyper, Alphatec's President and Chief Executive Officer. "The advanced self ratcheting mechanism allows for axial settling and simultaneously maintains graft compression. This technology, combined with the previously licensed patent from Dr. Hansen Yuan for an internally dynamic plate, allows Alphatec to provide the best of both philosophies of dynamic and rigid plating. This system, in addition to the Trestle anterior cervical plate solution, DYNAMO(tm) Semi-rigid Spinal System, V-STENT(tm) vertebral compression fracture solution, and our Osseo screw pedicle screw targeted at the aging patient demographic with poor bone quality, positions Alphatec to be the leader in the fastest growing segments of the market."
The financial terms of the License Agreement include: (1) an up-front license fee payment to be made by Alphatec to Progressive; (2) testing, design, regulatory and sales milestone payments that could begin to be achieved and paid by Alphatec to Progressive in 2008; and (3) a royalty payment based on net sales of licensed products, with minimum annual royalties beginning in 2009.
The exclusive License Agreement expires in 2028. Alphatec Spine has the right to sublicense the technology to third parties as well as terminate the License Agreement for any reason upon 90 days prior written notice to Progressive. Each party has the right to terminate the License Agreement for a material uncured breach by the other party.
About Alphatec
Alphatec Holdings, Inc. (Nasdaq:ATEC) designs, develops, manufactures and markets products for the surgical treatment of spine disorders. Alphatec's broad product portfolio and pipeline includes a variety of spinal implant products and systems focused on solutions addressing the cervical, thoracolumbar, intervertebral, minimally invasive, motion preservation, vertebral compression fractures and allograft markets. Alphatec's "surgeons' culture" emphasizes collaboration with spinal surgeons to conceptualize, design and co-develop a broad range of products. State-of-the-art in-house manufacturing capabilities provide a unique competitive advantage, enabling Alphatec to rapidly deliver customized solutions to meet surgeons' and patients' critical needs. Alphatec has 23 issued U.S. patents, six issued foreign patents and 30 pending patent applications, including 10 pending U.S. applications, six pending international applications and 15 pending foreign national applications. Alphatec's principal product offerings are primarily focused on the global spine fusion market, which is estimated by Alphatec to be more than $5.9 billion in 2007. In addition to its U.S. operations, Alphatec also markets a range of spine and orthopedic products in Asia through its subsidiary, Alphatec Pacific, Inc. For more information, please visit www.alphatecspine.com.
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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. These forward-looking statements include, but are not limited to: Alphatec's expected revenues in 2008, Alphatec's ability to accelerate new product momentum, bring to market differentiated products and commercialize its product pipeline. 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 successfully control its costs, Alphatec's ability to successfully leverage upon the experience of its Scientific Advisory Board, Alphatec's ability to develop and expand its spine fusion business in the United States, Asia and Europe, Alphatec's ability to enter the high-growth areas of spine disorders, including the market for disorders that are prevalent in aging patients, Alphatec's ability to meet fiscal year 2008 revenue guidance in either the United States, Asia or Europe, Alphatec's ability to expand and maintain a successful sales and marketing organization, continuation of favorable third party payor reimbursement for procedures performed using Alphatec's products, unanticipated expenses or liabilities or other adverse events affecting cash flow or Alphatec's ability to successfully control its costs or achieve profitability, uncertainty of additional funding, uncertainty of success in developing new products or products currently in Alphatec's pipeline, including those products that are intended to treat disorders prevalent in aging patients uncertainty of success in bringing to market differentiated products that meet the evolving needs of the contemporary spine surgeon, including without limitation a dynamic anterior cervical plate, demanding patients, and cost conscience healthcare providers, failure to successfully introduce, develop and commercialize new products, failure to achieve acceptance of Alphatec's products by the surgeon community, failure to obtain FDA clearance or approval for new products, 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 Alphatec's intellectual property. Please refer to the risks detailed from time to time in Alphatec's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Alphatec 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.