The medical device company BoneSupport has acquired Ultrazonix, a medical technology company which has developed a new ultrasound based method for treatment of herniated discs. At the same time BoneSupport is implementing a new share issue of SEK 122 million to guarantee continued expansion. The acquisition allows BoneSupport to broaden its product offering and strengthen its position in the market for treatment of spinal disorders.
”Through the acquisition of Ultrazonix we are bringing in a new and exciting technology platform which means that we will be able to treat herniated discs alongside our existing products for treatment of vertebral compression fractures,spine surgery and different orthopaedic conditions. This will give our operation a broader base and allow us to focus even more on the treatment of painful but very common spine disorders”, comments Fredrik Lindberg, CEO of BoneSupport.
”The deal with BoneSupport is a very good fit for Ultrazonix. We will now be able to draw on BoneSupport’s international contact network and existing channels to expand the sales of our products”, says Eugen Steiner, Chairman of Ultrazonix.
The Ultrazonix product is intended for high intensity focused ultrasound treatment of chronic back pain caused by herniated discs. The product is CE marked and has FDA clearance in the United States. The US and European market for this product amounts to about 600 million euros.
There are several positive synergies between BoneSupport and Ultrazonix. Both companies see the EU and North America as their prioritised markets. They have the same target groups, i.e. spinal surgeons, neurosurgeons, orthopaedic specialists, radiologists and anaesthesiologists. The merger will enable BoneSupport to broaden its product offering and market the products through its existing and developing distribution and marketing channels. The acquisition of Ultrazonix is being financed through a directed new share issue to existing Ultrazonix owners.
New share issue of SEK 122 million BoneSupport will also implement a new share issue of approx. SEK 122 million (€ 13 million) for subscription by existing as well as new owners. The capital infusion will primarily be used for marketing initiatives and an extensive clinical programme in advance of planned product launches within EU and selected markets such as the US and Canada. The new share issue is one of the largest in the Swedish healthcare sector during 2008.
”BoneSupport has major potential and we want to use the new share issue to accelerate commercialisation of our operation and guarantee our continued expansion”, says Michael Pålsson, Chairman of BoneSupport.
Through the new share issue, venture capital companies HealthCap, Stockholm and NBGI Ventures, London will increase their holdings in BoneSupport. Other major stakeholders include Teknoinvest, FERD Venture, Innovationskapital and Teknoseed.
About Ultrazonix Ultrazonix is a medical technology company established in 2001 which bases its products on research conducted by Professor Lars Lidgren at Lund University. The company has developed an ultrasound based method for treatment of herniated discs. The method is a minimally invasive intervention where an ultrasound probe is placed on the surface of the intervertrebral disc surface whereupon focused ultrasound is applied and the gelatinous disc proteins coagulate. Coagulation reduces the hydrophilic properties of the proteins which results in shrinkage of the disc and relief of the patient’s pain. The Ultrazonix method replaces conventional surgery, currently the most common way to treat a herniated disc. The result is the same, but the treatment is simpler and the patient recovers more quickly. The company is located in Lund and has four employees.
About BoneSupport BONESUPPORT AB is an innovative Swedish medical technology company, certified under ISO 13485, which focuses on development of ceramic, injectable bone substitutes for treatment e.g. of osteoporotic fractures. Established in 1999, BONESUPPORT AB today has 24 employees and is based at the Ideon Science Park in Lund, Sweden. The company has subsidiaries in the USA, where sales started late last year, and in Germany. BoneSupport has applied for EU approval of its key product CERAMENT™ SPINE SUPPORT for treatment of spinal fractures in patients with osteoporosis. Approval is expected in the autumn of 2008. The company has also applied for EU approval of its second product CERAMENT™ BONE VOID FILLER.
Market potential for the injectable bone filler CERAMENT™ is large world-wide. The global orthopaedic market generates billion dollar sales each year and within five years the potential market for treatment of e.g. spinal fractures is estimated to exceed 2 billion dollars in the US alone. Growth is estimated at about 50 percent annually.
For further information please contact: Fredrik Lindberg, CEO, BONESUPPORT AB Tel. +46 46 286 53 70 Mobile +46 708 86 53 70
Eugen Steiner, Chairman, Ultrazonix Tel +46 705406510
Press photographs available at www.bonesupport.com
