CARLSBAD, Calif., Oct 24, 2013 (GLOBE NEWSWIRE via COMTEX) -- Alphatec Holdings, Inc, the parent company of Alphatec Spine, Inc., a medical device company that provides physician-inspired solutions for patients with spinal disorders, today announced that it has entered into a three-year collaboration agreement with an experienced spine surgeon group to contribute to Alphatec
Spine's product innovation as well as future development and commercialization of the Company's product pipeline. The agreement combines the Company's expertise in product development with the knowledge, insights and experience of practicing spine surgeons who are regularly faced with implementing effective solutions to address medical challenges for their patients.
"This strategic alliance illustrates Alphatec's continued commitment to providing physician-inspired solutions to treat conditions of the spine and help enhance the quality of life for patients," said Les Cross, Alphatec Spine's Chairman and CEO. "By leveraging the unique strengths of each partner, we should significantly advance our product portfolio and product lifecycle plans through the development of innovative products and effective healthcare solutions."
Under the terms of the agreement, Alphatec Spine will gain exclusive rights to the use of all intellectual property developed by the surgeon group under the collaboration. Additional terms include:
-- The Company will make three annual payments to the physicians as sole consideration for services provided, totaling an aggregate of $8 million, paid in common stock of Alphatec Holdings at a per share price equal to the average NASDAQ closing price of the common stock on the five days leading up to and including the date of signing of the Collaboration Agreement.
-- Before each annual payment is made, the Company is permitted to withhold a portion of the payment if the physicians do not adequately perform the required services for that annual period.
-- The agreement does not provide for any cash consulting or future royalty payments to the physician collaborators.
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec Holdings, Inc., is a medical device company that designs, develops, manufactures and markets physician-inspired products and solutions for the treatment of spinal disorders associated with trauma, congenital deformities, disease and degeneration. The Company's mission is to combine innovative surgical solutions with world-class customer service to improve outcomes and patient quality of life. The Company and its affiliates market products in the U.S. and in over 50 countries internationally via a direct sales force and independent distributors.