Healthcare Industry News: Blackstone Medical
News Release - March 18, 2008
Orthofix International Announces Sale of Pain Care(R) Assets in its Sports Medicine SubsidiaryHUNTERSVILLE, N.C.--(HSMN NewsFeed)--Orthofix International N.V. (NASDAQ:OFIX ) (the Company) announced today that it has sold all of the intellectual property, business assets and distribution rights related to the Pain Care® line of ambulatory infusion pumps previously designed, manufactured and distributed by its sports medicine subsidiary, Breg Inc.
The sale is consistent with the Company’s strategic goal of narrowing the focus of its sports medicine business to the functional knee bracing and cold therapy markets, where it currently holds #2 market share positions.
“Breg had outstanding results in 2007 with revenue growth of 11%, which was significantly in excess of the overall sports medicine market,” stated Orthofix’s CEO, Alan Milinazzo. “We believe that by increasing our focus on our core businesses we can further strengthen our position within the functional knee bracing and cold therapy markets.”
LMA International N.V. (LMA) has agreed to pay approximately $5.9 million in cash upon closing of the transaction, and an additional $1.0 million based on the attainment of certain revenue generation objectives during the first six-month period subsequent to the closing. As part of the transaction, Breg will continue to manufacture the Pain Care products for LMA during a transitional period of up to 18 months.
Orthofix indicated that its previously announced 2008 financial expectations for Breg excluded any contribution of revenue or earnings from operations related to its Continuous Passive Motion business, which was sold in January of this year, as well as its Pain Care products. These two product lines generated a total of approximately $6.6 million in revenue in 2007.
About Orthofix International, N.V.
Orthofix International N.V., a global diversified orthopedic products company, offers a broad line of minimally invasive surgical, as well as non-surgical, products for the spine, orthopedic, and sports medicine market sectors that address the lifelong bone-and-joint health needs of patients of all ages, helping them achieve a more active and mobile lifestyle. Orthofix’s products are widely distributed around the world to orthopedic surgeons, hospitals and patients via Orthofix’s sales representatives and its subsidiaries, including Breg, Inc. and Blackstone Medical, Inc. In addition, Orthofix is collaborating in R&D partnerships with leading medical institutions such as the Orthopedic Research and Education Foundation, the Cleveland Clinic Foundation, and the National Osteoporosis Institute. For more information about Orthofix, please visit www.orthofix.com.
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