Xtant Medical Acquires Coflex® Product Line from Surgalign for $17 Million
01 Mars 2023 - 3:15PM
Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global
medical technology company focused on surgical solutions for the
treatment of spinal disorders, and Surgalign Holdings, Inc.,
(NASDAQ: SRGA), a global medical technology company focused on
elevating the standard of care by driving the evolution of digital
surgery, today announced the completion of a transaction
between the companies.
On February 28, 2023, Xtant Medical and
Surgalign entered into a Definitive Agreement and subsequently
closed on the transaction whereby Xtant acquired the Coflex®
and Cofix product lines from Surgalign for a total
consideration of $17 million.
Coflex is an interlaminar stabilization
device used after an open decompression that can be performed in
various settings, offering a non-fusion treatment option for lumbar
spinal stenosis (LSS) patients. The number of patients
diagnosed globally with LSS is approximately 2.4
million representing the largest single-growing patient
demographic in spine. The Coflex device is the
only FDA PMA-approved implant for the treatment of
LSS, has been implanted in more than 200,000 patients in over
60 countries, is clinically validated with more than 90 peer
reviewed publications and has established Ambulatory Surgery Center
(ASC) reimbursement. Cofix is a supplemental fixation
device, which is a minimally invasive system intended for use on
all levels of the lumbar spine.
“We are thrilled to acquire
the Coflex and Cofix product lines, which will help accelerate
our top-line growth and position Xtant to achieve critical
mass,” said Sean Browne, President and CEO
of Xtant Medical. “Coupled with our less invasive
Axle interspinous device and Silex SI Fusion product lines, Coflex
augments our offering in the fast-growing segments of ASC and
outpatient procedures. Aligning with our key growth pillars,
this acquisition expands our footprint by adding new distributors
and a significant number of trained surgeons to the Company’s
network. We expect these products to add approximately $14 million
in annual revenue and attractive margins to enable Xtant to achieve
profitability in the near future.”
Terry Rich, President and Chief Executive
Officer of Surgalign, stated, “We believe that Coflex and
Cofix are great products for patients and with Xtant, we have found
the right partner that will continue the legacy and drive value for
all customers. This transaction provides us with non-dilutive
capital which will be used to advance our leading platform of
artificial intelligence products across the entire continuum of
care. Moving forward, we are focused on commercializing our HOLO
Portal Surgical Guidance System, our soon to be launched HOLO AI
Insights for research-use, and further developing our HOLO AI
platform, while driving innovation in our remaining product lines
to improve patient outcomes.”
UBS Investment Bank served as exclusive
financial advisor and DLA Piper LLP served as legal counsel to
Surgalign and Fox Rothschild LLP served as legal counsel to Xtant
in connection with this transaction.
About Xtant Medical Holdings,
Inc.Xtant Medical Holdings, Inc. (www.xtantmedical.com) is
a global medical technology company focused on the design,
development, and commercialization of a comprehensive portfolio of
orthobiologics and spinal implant systems to facilitate spinal
fusion in complex spine, deformity and degenerative procedures.
Xtant people are dedicated and talented, operating with the highest
integrity to serve our customers.
The symbols ™ and ® denote trademarks and
registered trademarks of Xtant Medical Holdings, Inc. or its
affiliates, registered as indicated in the United States, and in
other countries. All other trademarks and trade names referred to
in this release are the property of their respective owners.
About Surgalign Holdings,
Inc.Surgalign Holdings, Inc. is a global medical
technology company committed to the promise of digital health to
drive transformation across the surgical landscape. Uniquely
aligned and resourced to advance the standard of care, the company
is building technologies physicians and other health providers will
look to for what is truly possible for their patients. Surgalign is
focused on developing solutions that predictably deliver superior
clinical and economic outcomes. Surgalign markets products
throughout the United States and in approximately 50 countries
worldwide through an expanding network of top independent
distributors. Surgalign is headquartered in Deerfield, IL, with
commercial, innovation and design centers in San Diego, CA, Warsaw
and Poznan, Poland, and Wurmlingen, Germany. Learn more at
www.surgalign.com and connect on LinkedIn and Twitter.
Cautionary Statement Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements that are predictive in nature, that
depend upon or refer to future events or conditions, or that
include words such as “intends,” ‘‘expects,’’ ‘‘anticipates,’’
‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’ “continue,” “future,”
‘‘will,’’ “potential,” “going forward,” similar expressions or the
negative thereof, and the use of future dates. Forward-looking
statements in this release include the Company’s continued
investment in and the future success of its key growth initiatives
and their impact on the Company’s future growth strategy, operating
results and financial performance. The Company cautions that its
forward-looking statements by their nature involve risks and
uncertainties, and actual results may differ materially depending
on a variety of important factors, including, among others: the
Company’s future operating results and financial performance; the
ability to increase or maintain revenue; possible future impairment
charges to long-lived assets and goodwill and write-downs of excess
inventory if revenues continue to decrease; the ability to remain
competitive; the ability to innovate, develop and introduce new
products; the ability to engage and retain new and existing
independent distributors and agents and qualified personnel and the
Company’s dependence on key independent agents for a significant
portion of its revenue; the effect of the COVID-19 pandemic and
hospital staffing shortages on the Company’s business, operating
results and financial condition, especially when they affect key
markets; the Company’s ability to implement successfully its future
growth initiatives and risks associated therewith; the effect of
product sales mix changes on the Company’s financial results;
government and third-party coverage and reimbursement for Company
products; the ability to obtain and maintain regulatory approvals
and comply with government regulations; the effect of product
liability claims and other litigation to which the Company may be
subject; the effect of product recalls and defects; the ability to
obtain and protect Company intellectual property and proprietary
rights and operate without infringing the rights of others; the
ability to service Company debt, comply with its debt covenants and
access additional indebtedness; the ability to obtain additional
financing on favorable terms or at all; and other factors.
Additional risk factors are contained in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2021 filed with
the Securities and Exchange Commission (SEC) on March 8, 2022 and
subsequent SEC filings by the Company. Investors are encouraged to
read the Company’s filings with the SEC, available at www.sec.gov,
for a discussion of these and other risks and uncertainties. The
Company undertakes no obligation to release publicly any revisions
to any forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law. All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
this cautionary statement.
Investor Relations Contact for Xtant
Medical:Matt SteinbergLazar FINN PartnersPh:
646-871-8481Email: matt.steinberg@finnpartners.com
Investor and Media Relations Contact for Surgalign
Holdings:Glenn WienerGW CommunicationsPh:
917-887-8434Email: gwiener@gwcco.com
Surgalign (NASDAQ:SRGA)
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