Alphatec Holdings has announced that it has closed its acquisition of certain assets of Phygen, developer of products for spine surgery.
“We are very pleased and excited to close this important transaction and bring these two companies together. It is truly a synergistic fit and a transformational event for both organisations,” said Les Cross, chairman and CEO, Alphatec Spine. “As I promised when I became CEO earlier this year, Alphatec Spine is focused on becoming more market-driven and customer-focused in order to strengthen sales and profitability. We are taking steps to launch new products, enhance the productivity of our sales force and distribution network, and target more surgeon-customers. Simultaneously, we are supporting these activities with operational improvements designed to lower our cost structure.”
“With this transaction, we believe we have significantly strengthened our capabilities to succeed with our strategy. Phygen should bring us an enhanced product development process driven by their scientific advisory board and a broad portfolio of complementary products. We are eager to leverage the strengths of both companies to deliver greater value to spine surgeons in 2013. In addition, I am pleased to welcome Tom Gardner and his experienced leadership team to Alphatec,” said Cross.
Tom Gardner, CEO, Phygen, said: “Phygen has over 100 active spine surgeons, many of whom have been directly involved in developing new innovations and product enhancements that have enabled Phygen to establish a broad and unique line of spinal implant solutions. This transaction will provide Alphatec with access to these innovations. In addition, I feel as though our engineering capabilities complement Alphatec’s, which should accelerate the cycle of innovation. At the same time, Phygen’s member-surgeons will have access to Alphatec’s dynamic product line.
“A prerequisite for success in today’s healthcare market is fast and cost-effective product innovation. When the respective management teams discussed the benefits of this transaction, we focused on the potential upside of combining the innovation capabilities of the Phygen surgeons with the engineering, manufacturing and distribution proficiencies of Alphatec. This promises to be a very exciting time for the shareholders of both companies,” added Gardner.