CARLSBAD, Calif., Sept. 27, 2012 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc. (the "Company"), announced today that its board of directors has approved the Company's plans to acquire certain assets of Phygen, LLC, a spinal implant manufacturer based in Irvine, CA. The purchase price for the assets is approximately $15.2 million in stock and cash. On August 7, 2012, Alphatec Spine first announced that it had signed a letter of intent to acquire the assets of the company.
"Since becoming CEO of Alphatec Spine earlier this year, our growth strategy for 2012 and beyond includes a focus on new product launches and acquisitions," said Les Cross. "We have since launched new products such as our BridgePoint™ Spinous Process Fixation System, acquired exclusive U.S. distribution rights to market a synthetic bone growth biologic under our own brand name of Alphatec NEXoss™ and we have plans to acquire certain assets of Phygen, LLC, which we hope to close shortly. It is clear we are executing our new business strategy."
Noted Neurosurgeon, Mark Renfro, M.D., a member of Phygen's Board of Governors, stated, "Phygen is delighted by this transaction with Alphatec. Upon closing, Phygen will look to bring its innovative product development process, which has a foundation in design input from active spine surgeons and strategic direction from Phygen's Scientific Advisory Board, into the Alphatec family. All in all, I believe that this proposed transaction is a real win-win for Phygen and Alphatec."
Alphatec Spine said that it expects this transaction to contribute approximately $15 million in revenue in 2013 and be accretive to fully diluted GAAP earnings per share in 2013. Additional details regarding the transaction will be provided if and when the acquisition is closed. The closing of this transaction is subject to the approval of a majority of the members of Phygen, the execution of the definitive documents and customary closing conditions set forth in the definitive documents.
About Alphatec Spine
Alphatec Spine, Inc. is a wholly owned subsidiary of Alphatec Holdings, Inc. (Nasdaq:ATEC). Alphatec Spine is a medical device company that designs, develops, manufactures and markets products for the surgical treatment of spine disorders, primarily focused on the aging spine. The Company's mission is to combine world-class customer service with innovative, surgeon-driven products that will help improve the aging patient's quality of life. The Company is poised to achieve its goal through new solutions for patients with osteoporosis, stenosis and other aging spine deformities, improved minimally invasive products and techniques and integrated biologics solutions. In addition to its U.S. operations, the Company also markets its products in over 50 international markets through its affiliate, Scient'x S.A.S., via a direct sales force in France, Italy and the United Kingdom and via independent distributors in the rest of Europe, the Middle East and Africa. In Latin America, the Company conducts its business through its subsidiary, Cibramed Produtos Medicos. In Japan, the Company markets its products through its subsidiary, Alphatec Pacific, Inc. In the rest of Asia and Australia, the Company sells its and Scient'x's products through its and Scient'x's distributors.
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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. Alphatec Spine 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. Forward looking statements include references to the timing, revenue expectations and earnings accretion from the transaction described in this press release. The words "believe," "will," "should," "expect," "intend," "estimate" and "anticipate," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. The important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to; the uncertainty of success in closing the acquisition, which still requires the approval of a majority of Phygen's members; failure to achieve or maintain continued acceptance of Alphatec Spine's or Phygen's products by the surgeon community, including without limitation to Alphatec's BridgePoint system and Alphatec NEXoss products; failure to incorporate the Phygen product development process into Alphatec's processes and systems; failure to achieve anticipated future streamlining and cost savings initiatives related to Alphatec Spine's business; failure to successfully begin in-house manufacturing of certain products; Alphatec Spine's ability to develop and expand its U.S. and/or global revenues; continuation of favorable third party payor reimbursement for procedures performed using Alphatec Spine's products; unanticipated expenses or liabilities, including those related to the transaction described in this press release, or other adverse events affecting cash flow or Alphatec Spine's ability to successfully control its costs or achieve profitability; uncertainty of additional funding; Alphatec Spine's ability to compete with other competing products and with emerging new technologies; product liability exposure; failure to meet all financial obligations in the Cross Medical Settlement or its credit agreement; patent infringement claims and claims related to Alphatec Spine's intellectual property. Please refer to the risks detailed from time to time in Alphatec Spine's SEC reports, including its Annual Report Form 10-K for the year ended December 31, 2011, filed on March 5, 2012 with the Securities and Exchange Commission, as well as other filings on Form 10-Q and periodic filings on Form 8-K. Alphatec Spine 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.