CARLSBAD, Calif., April 24, 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 spine disorders, announced today that Alphatec and Scient’x, S.A. have mutually terminated Alphatec’s license from Scient’x of intellectual property related to the DYNAMO(tm) Semi Rigid Rod System. Terms of the termination include a repayment of the initial $2.6 million license fee originally paid to Scient’x and a full repayment of inventory that Alphatec will return to Scient’x.
“I am pleased that we were able to come to this agreement with Scient’x as it allows Alphatec to focus on our mission of being the leading independent spinal company in the world by focusing on solutions for the aging spine,” stated Dirk Kuyper, President and Chief Executive Officer of Alphatec. Mr. Kuyper added, “After a thorough portfolio review, DYNAMO(tm) did not entirely fit within the new strategic direction of Alphatec and we plan on utilizing the $2.6 million repayment to support the commercialization of our innovative product development pipeline, such as OsseoScrew, V-Stent, GLIF, and other technologies targeted at the aging spine.”
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, 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 implant and biologics market, which is estimated to be more than $7.0 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.
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, Alphatec’s ability to utilize the $2.6 million repayment described in this release to support its product development pipeline, the growth rate of the spine market related to aging and elderly patients, price erosion related to Alphatec’s products, 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.
CONTACT: Alphatec Holdings, Inc. Gordon C. Bigler, Vice President of Finance, IR & Corp. Communications 760.494.6667 gbigler@alphatecspine.com
