Healthcare Industry News: Fixation System
News Release - June 23, 2008
Orthofix International Acquires Intellectual Property For Next Generation Spinal System
Unique locking mechanism simplifies implantationSystem designed to provide surgeon flexibility
BOSTON--(HSMN NewsFeed)--Orthofix International N.V. (NASDAQ:OFIX ) announced today that it has acquired the intellectual property (IP) and related technology for a next generation spinal Fixation System from Intelligent Implant Systems, LLC (IIS).
The innovative system is designed for the posterior treatment of disorders along the entire spine. The titanium implants are locked in place with the use of a unique cap that does not require the use of a torque wrench, which simplifies the implant process.
Based in Charlotte, N.C., IIS has a history of successfully developing new technology for the spine market. The company combines significant experience in the development of intellectual property with a broad internal prototyping capacity. “We are excited to be working with Orthofix and the experienced team in its spine division,” said Marc Richelsoph, President and CEO of IIS. “We believe this new system will bring a unique combination of smaller implants and state-of-the-art polyaxial screw technology to spine surgeons around the world.”
Orthofix’s CEO, Alan Milinazzo, stated “We’re very pleased to be working with IIS, which has a proven track record of working with major spine companies and developing innovative spine products to benefit patients around the world. This transaction with IIS demonstrates Orthofix’s ongoing commitment to building a unique portfolio of spine products and making new technologies available to spine surgeons. Set for release in late 2010, this next generation spine system will be an important part of a series of planned product launches beginning in 2009 as the result of both our own R&D efforts as well as additional inorganic transactions.”
Under the terms of the agreement Orthofix will pay IIS up to $7 million for the assignment of the IP and other performance milestones, including $2.5 million up front.
About Orthofix
Orthofix International, N.V., a global diversified orthopedic products company, offers a broad line of minimally invasive surgical, and 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 and patients via Orthofix’s sales representatives and its subsidiaries, including BREG, Inc. and Blackstone Medical, Inc., and via partnerships with other leading orthopedic product companies. In addition, Orthofix is collaborating in R&D partnerships with leading medical institutions such as the Orthopedic Research and Education Foundation, Rutgers University, the Cleveland Clinic Foundation, Texas Scottish Rite Hospital for Children and National Osteoporosis Institute. For more information about Orthofix, please visit www.orthofix.com.
About Intelligent Implant Systems, LLC
Intelligent Implant Systems, LLC is a Charlotte, North Carolina based company specializing in Research and Development of spinal products. Combining significant experience in R&D and intellectual property development with complete internal prototyping capacity, Intelligent Implant Systems works to rapidly bring state-of-the-art products to the marketplace.
Forward-Looking Statements
This communication contains certain forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may include, but are not limited to, statements concerning the projections, financial condition, results of operations and businesses of Orthofix and its subsidiaries and are based on management’s current expectations and estimates and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements.
Factors that could cause or contribute to such differences may include, but are not limited to, risks relating to the expected sales of its products, including recently launched products, unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, risks relating to the protection of intellectual property, changes to the reimbursement policies of third parties, changes to and interpretation of governmental regulation of medical devices, the impact of competitive products, changes to the competitive environment, the acceptance of new products in the market, conditions of the orthopedic industry and the economy, corporate development and market development activities, including acquisitions or divestitures, unexpected costs or operating unit performance related to recent acquisitions and other factors described in our annual report on Form 10-K and other periodic reports filed by the Company with the Securities and Exchange Commission.
Source: Orthofix International
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