LOS ANGELES, Oct. 7, 2009 (GLOBE NEWSWIRE) -- Cardo Medical (OTCBB:CDOM), a company engaged in the development of orthopedic medical devices, announced that it has acquired substantially all of the assets of Vertebron Inc., a spinal implant device company located in Stratford, CT, for $1.3 million in cash.
Vertebron designs, develops, manufactures and sells spinal implant products focused on fusion technology for the lumbar and cervical spine as well as motion preservation technologies. Cardo Medical will retain 100% ownership of all Vertebron's implant technologies for spinal surgery. Cardo has also acquired all intellectual property rights owned by Vertebron which includes over 20 U.S. issued patents and patent applications. Through a previous licensing agreement, Cardo Medical currently markets and distributes the PSS Pedicle Screw and SCP Cervical Pate systems. Cardo Medical will expand its distribution domestically with this acquisition.
Vertebron reported it had generated approximately $11 million in sales for 2008. On April 21, 2009 Vertebron filed for Chapter 11 bankruptcy protection in the District of Connecticut. The acquisition is the result of a Chapter 11 auction process, approved by the United States Bankruptcy Court for the District of Connecticut.
Dr. Andrew Brooks, Chairman and Chief Executive Officer of Cardo Medical, stated, "We are pleased to have been able to extend our licensing agreement into full ownership rights of this innovative and solid portfolio of spinal technologies. This acquisition will provide a great springboard to our expanding product portfolio of innovative spinal technologies; and we look forward to a smooth incorporation of these significant assets in the coming quarters."
Michael Kvitnitsky, President and Chief Operating Officer of Cardo Medical, stated, "As a company, Cardo Medical is now in unique position to build on multiple entries in many segments of the high growth spinal market. We are bringing the same kind of energy and expertise we devoted to the development of our homegrown products to extending our competitive advantage in innovation with the Vertebron clinically successful product portfolio."
About Cardo Medical, Inc.
Cardo Medical (OTCBB:CDOM) develops reconstructive orthopedic and spinal surgery products through advanced engineering and focuses on product development, marketing and distribution within the US market. Cardo Medical's superior engineering talent closely collaborates with leading surgeons around the country to create products that reduce or eliminate joint pain and allow patients to achieve more active lives. The company's cutting edge products are specifically developed with patients, surgeons and OR staff in mind and are designed to reduce operative time, enhance surgical technique, shorten hospital stays, reduce recovery time and improve outcomes. Cardo Medical's product portfolio includes devices for knee, hip, spinal fusion and motion preservation arthroplasty and replacement, many of which have already received FDA clearance. Cardo Medical has a robust and innovative product pipeline pending both USPTO and FDA submission and clearance.
Cardo Medical works in small, focused development teams in concert with physicians to rapidly develop products from concept to launch. We are committed to exceeding the standards by which any device company is judged. Please visit our website at www.cardomedical.com for more information on the PSS Pedicle Screw and SCP Cervical Plate Systems in addition to our complete portfolio of Reconstructive and Spinal Implant systems.
This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), regarding product development efforts and other non-historical facts about expectations, beliefs or intentions regarding the business, technologies and products, financial condition, strategies or prospects. Many factors could cause actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in our filings with the Securities and Exchange Commission, as well as risks inherent in funding, developing and obtaining regulatory approvals of new, commercially-viable and competitive products and treatments, including the risks that any products under development may fail, may not achieve the expected results or effectiveness and may not generate data that would support the approval or marketing of products for the ailments being studied or for other ailments. In addition, forward-looking statements also may be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, patent positions and litigation, among other factors. We do not undertake any obligation to update forward-looking statements. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.