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[January 2007]
NuVasive Acquires Biologic and Provides Novel Ceramic and Mineral Composition
NuVasive Inc (San Diego, CA, USA), a medical device company focused on developing products for minimally disruptive surgical treatments for the spine, has announced the acquisition of technology and assets from Radius Medical LLC, a privately owned company based in Newport Beach, CA, USA. The acquired technology includes exclusive licence and marketing rights to Formagraft(R) Bone Graft Strips, Formagraft Bone Graft Granules and the underlying collagen technology.Pursuant to the acquisition agreements, NuVasive made a closing payment of US$16 million, consisting of US$10.2 million in stock and US$5.8 million in cash and placed an additional US$2 million in cash in escrow for an 18-month period.
Radius Medical will continue to serve as a consultant to NuVasive on product and business transition. NuVasive also plans to make a separate US$2 million equity investment in Maxigen Biotech Inc, the Taiwanese company which manufactures Formagraft and owns a portion of the core technology.
The Formagraft products are generally referred to as biologics. During spinal fusion procedures, a biologic product is often used as a bone void filler to facilitate fusion, specifically promoting the growth of bone at the operative site. Formagraft provides a physical scaffold upon which bone will grow and can be easily hydrated with bone marrow during surgery. NuVasive believes the product's combination of highly purified type 1 collagen, hydroxyapatite and tricalcium phosphate makes Formagraft an ideal matrix to deliver robust bone growth and improved fusion results in both lumbar and cervical spinal fusion procedures. Formagraft received 510(k) clearance from the Food and Drug Administration (FDA) in May 2005.
Alexis Lukianov, Chairman and CEO, said: "We believe the addition of a biologic platform to our already strong product portfolio is an important strategic milestone. It is consistent with our objectives of developing or acquiring innovative technologies while maintaining momentum in training surgeons and increasing product penetration. Importantly, this acquisition also provides NuVasive with a platform for the potential development of more powerful biologic products. Our immediate goal is to maintain and expand the sales of these products for 2007 with our exclusive sales force".
www.nuvasive.com
ENDS