Healthcare Industry News: Orthofix
News Release - July 22, 2009
Orthofix International Announces Development & Marketing Agreement with Stout Medical GroupOrthofix obtains exclusive global licensing rights for novel expandable vertebral body replacement device
BOSTON--(HSMN NewsFeed)--Orthofix International N.V. (NASDAQ: OFIX ) (the Company) announced today that the Company has signed a License and Product Development Agreement with Stout Medical Group, LP for the development and marketing of a new expandable vertebral body replacement (VBR) and corpectomy device.
“Our agreement with Stout Medical is expected to allow us to provide a treatment for the tumor and trauma segment of the spinal market and give our surgeon customers a novel expandable corpectomy implant,” said Alan Milinazzo, President and CEO of Orthofix International. “Stout has a proven history of developing novel implant designs for the spinal market, and we are pleased to partner with them to commercialize their design.”
The initial term of the agreement is for 15 years, and gives Orthofix exclusive global licensing rights to the new device, which is expected to be introduced during the second half of 2010. According to a recent market research report the U.S. market for VBR devices is currently estimated to be approximately $77 million, with the expandable device segment growing the fastest at approximately 12%.
“We are delighted to partner with Orthofix Spinal Implants on the development and marketing of our very novel expandable VBR device,” said Tom Molz, President and CEO of Stout Medical Group.
The new device will be designed for use in corpectomy procedures during which one or more vertebral bodies are removed in connection with the removal of a tumor or due to a trauma to the spine. Expandable corpectomy devices provide in situ expansion, eliminate the need to cut the device to a specific size, and provide the surgeon with options for less invasive incisions.
Orthofix International, N.V., a global medical device 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 Musculoskeletal Transplant Foundation, the Orthopedic Research and Education Foundation, Rutgers University, Texas Scottish Rite Hospital for Children and National Osteoporosis Institute. For more information about Orthofix, please visit www.Orthofix.com.
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.
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