Orthopedic News Roundup 8-Mar-07
BY LAUREN UZDIENSKI, MARCH 8, 2007
Orthofix International N.V. announced 4Q:06 revenue of $116.1 million, an increase of 45% over 4Q:05 and just missing estimates of $116.6 million. $28.1 million of 4Q:06's revenue can be attributed to the September 2006 acquisition of Blackstone Medical, Inc. Adjusted net income in the fourth quarter was $8.5 million, or $0.51 per share, meeting analysts' estimates and representing a 9% increase over 4Q:05's $0.47.
Osteotech announced 4Q:06 net income of $0.5 million or $.03 diluted earnings per share, beating analysts' estimates of $0.01. This compares to a 4Q:05 net loss of $11.6 million, or $0.67 diluted net loss per share. Consolidated revenues for the fourth quarter of 2006 were $25.4 million, beating analysts' estimates of $24.7 million and marking a 16% increase over 4Q:05's consolidated revenues of $21.9 million. Gross margins increased to 50% in 4Q:06 from 19% in 4Q:05, which the Company attributed to productivity initiatives and increased unit sales.
Wright Medical Group Inc. announced a $17 million cash acquisition of assets from Darco International Inc., expanding Wright Medical's reconstructive foot surgery product line. Assets include Darco's MRS Modular Rearfoot, MFS Modular Forefoot and FRS Forefoot Reconstructive systems. These products fetch about $6.0 million in sales, mostly in Germany, and Wright Medical is planning a U.S. launch. The transaction is expected to close early in the second quarter.
Tornier agreed to acquire DVO Extremity Solutions, which manufactures a series of plates for distal radius fractures. No terms were released. Additionally, Tornier announced the closing of the Nexa Orthopedics acquisition.
Straumann signed an agreement to acquire etkon, a German company that designs laser scanning systems used in dental labs. Straumann will hold a 77% majority stake in etkon for EUR77 million (US$101.37 million) in cash. Straumann intends to acquire the remaining 33% stake, currently owned by investment funds, for EUR33 million (US$43.44 million) in the near future.
Disc Dynamics raised another $3.0 million, closing a $27 million funding round. Most of the funding had been previously announced, and it will go toward developing a spinal-disc repair treatment. The funding came from an undisclosed financial investor as well as Split Rock Partners of Eden Prairie, Pequot Capital of New York and Brightstone Capital and Affinity Capital Management of Minneapolis.
ReGen Biologics completed a $3 million private equity placement. When combined with a equity placement announced in December 2006, it provides the Company with a total of approximately $10 million in equity financing and up to a total of approximately $10 million more, available through an exercise of options upon FDA clearance of the Company's collagen scaffold 510(k). Under the terms of the financing, the Company sold 71,429 shares of restricted Series D convertible preferred stock at a price of $42 per share, for gross proceeds of approximately $3 million.
Effective February 14, 2007, Osteotech, Inc. entered into the First Amendment to the Tissue Recovery Agreement between the Company and Community Blood Center d/b/a Community Tissue Services, an Ohio nonprofit organization. Under the terms of the Agreement, CTS will provide the Company with certain minimum amounts of donor human bone and related connective soft tissue every month. The tissue is distributed by Osteotech to hospitals and surgeons under the Company's standard bone product label. The Company will reimburse CTS for costs related to recovering and assessing donor suitability for delivered Bone Tissue that meet the Company specifications, recovery processes and shipping requirements.
Product Introduction & Update
Biomet, Inc. announced today that Biomet 3i, the Company's dental reconstructive device subsidiary, has introduced a new dental implant that utilizes nanotechnology. The NanoTite Implant works with Biomet 3i's OSSEOTITE, adding deposits of nano-scale calcium phosphate crystals to approximately 50% of the surface. Pre-clinical results are said to show that these nano-scale deposits create a surface on the implant that appears to impact how the implant bonds with the bone.
In an effort to establish a presence in Asia, LDR announced the opening of LDR China, a Beijing arm of the company that also has offices in Austin, Texas and Troyes, France. On the potential of the Chinese market, LDR President and CEO Christophe Lavigne comments, "China is emerging as a strategically strong position in healthcare consumption, and we see it as being especially critical for the spinal industry."
Therics, LLC announced plans this week to move manufacturing of their bone substitute surgical products from New Jersey to Akron, Ohio. Operations are expected to begin in Akron by next week. The move was encouraged by the Akron Global Business Accelerator, a city initiative that brings startup and growing companies to Akron.
ApaTech announced plans to double its sales force in the UK in the next quarter and has appointed an additional regional sales vice president for the South East region of the U.S., with a particular focus on Florida, Georgia and Texas. Expansion of the sales force in Europe may continue to support new product launches. Additionally, the Company announced record sales of Actifuse™ EasyPrep, their osteostimulative bone graft, with more than 1,100 units sold worldwide during February.
Regeneration Technologies added a sixth member of their Board of Directors, Gregory P. Rainey, 54, the President of CCI Performance Group. At CCI Performance Group, Rainey consults with companies on strategic sales and marketing issues as well as sales force performance improvements, and he is the former Vice President of Sales for Stryker's Orthopedics Division.