Synthes-Stratec Agrees to Acquire Spine Solutions, Inc., a Leading Developer of Total Spine Disc Replacement
Oberdorf/Switzerland, February 06, 2003
Synthes-Stratec announced today that it has agreed to acquire Spine Solutions, Inc. (SSI), developer and marketer of a revolutionary and unique total artificial disc system designed to significantly reduce spinal disorders and back pain and restore mobility to the lumbar and cervical spine after surgery.
The acquisition price of US $350 million includes a US $175 million payment at closing and up to an additional US $175 million may be paid on the achievement of certain milestones relating to FDA approval of its cervical and lumbar disc products.
The ProDisc® system, which is made of proven materials with more than a 20 year history of use in hip and knee replacement, was first developed by Dr. Thierry Marnay in the late 1980’s. It was subsequently refined in close cooperation with Aesculap AG. In 1999, Viscogliosi Brothers, LLC founded Spine Solutions Inc. and acquired the ProDisc® system for the purpose of commercializing the ProDisc® system in the U.S. market, as well as internationally.
“ProDisc®, a patent protected system, is a promising new technology that could transform spine surgery and substantially improve patient outcomes,” said Hansjörg Wyss, Chairman and CEO of Synthes-Stratec. “We are excited that the Spine Solutions team will join us to bring this product to market and add to our broad range of proven treatment solutions for spine surgeons and patients.”
“Synthes-Stratec will provide the ideal means for realizing the full potential of the ProDisc®,” said Anthony Viscogliosi, founder and president, SSI. Viscogliosi continued, “Synthes-Stratec’s strong resources and market leadership will fully complement the Spine Solutions’ ProDisc® technology, thereby quickening the successful market introduction of this significant new class of spinal disc replacement devices.” Viscogliosi added, “Spine Solutions’ ‘surgeons-train-surgeons’ education concept also complements the training philosophy of the Synthes-Stratec organization, ensuring a competent handling of the disc, as well as the surgical procedure itself.”
The ProDisc® could transform spine surgery by replacing a high percentage of spinal fusion procedures with disc replacement procedures. One of the significant competitive advantages of the ProDisc® is that the design of the instrumentation enables less invasive surgery and offers a procedure which benefits the patient, is easy-to-learn and user friendly to surgeons.
Two European pioneers in spine surgery and leading users of ProDisc® implants welcomed the merger. Dr. Thierry Marnay, Montpellier, France, said, “I am delighted with this merger because it supports the further development of ProDisc® which promises to revolutionize spine repair and offers thousands of patients worldwide a new quality of life.” Dr. Rudolph Bertagnoli, Straubing, Germany, said, “The essence of the ProDisc® system is its ability to restore movement in life – and life is movement. Seen in this light, the transaction brings fresh hope and opportunity for surgeons and patients alike.”
To date, SSI has obtained CE Mark approval in Europe. Through various distributors, Spine Solutions is currently selling the ProDisc® throughout 26 countries in Europe, Asia Pacific, Latin America and South Africa. The ProDisc®, which has been evaluated in a retrospective clinical study of 64 patients dating back more than 10 years with excellent follow-up results, has now been implanted in more than 2,300 patients worldwide.
The company believes the global market potential for total disc replacement (spine arthroplasty) will grow to $3 billion by 2008.
Spine Solutions is one of only two companies currently conducting a FDA approved multi-center pivotal IDE study for a lumbar total disc replacement. The company expects a final FDA approval within a reasonable timeframe based on the large number of patients already treated with the ProDisc® system.
It is the intention that Spine Solutions, Inc. will continue to operate as an independent subsidiary within the Synthes-Stratec group.
Synthes-Stratec – A leading orthopaedic trauma and spine company
Synthes-Stratec is a leading provider of instruments, implants and power tools for the orthopaedic and spine surgery market. The company develops, manufactures, and distributes products for the surgical treatment of bone fractures, maxillofacial trauma or deformities, and a full range of prod-ucts and systems for spine surgery.
For further information please contact
Peter Fehlmann, Investor Relations, Synthes-Stratec, Inc.
Phone: +41 61 965 63 39, Fax: +41 61 965 66 06, e-mail: ir.info@synthes.com
http://www.synthes-stratec.com/
http://www.spinesolutionsinc.com/