PLAINSBORO, N.J., Sep 14, 2009 (GlobeNewswire via COMTEX News Network) -- Integra LifeSciences Holdings Corporation (Nasdaq:IART) announced today that Integra Spine has acquired substantially all of the assets of Innovative Spinal Technologies, Inc. (IST) for $9.25 million in cash.
IST designed, developed, manufactured, and sold spinal implant products focused on minimally invasive surgery (MIS) and motion preservation techniques. The product lines acquired in the transaction include the Paramount(R) MIS / Open system for percutaneous lumbar fusion procedures, the Paramount(R) interbody fusion system, and the Cordant(TM) anterior cervical plating system, as well as the product development assets related to IST's Axient(TM) product line for posterior dynamic stabilization. Integra Spine acquired IST's portfolio of over 100 U.S. and foreign patents and patent applications, its trademarks, and its product inventory, and assumed certain of its patent license agreements.
"We are excited to add a minimally invasive spinal implant system to our product portfolio," said Randy Theken, President of Integra Spine." This acquisition gives us innovative products that can be available near term, as well as intellectual property that will support a pipeline of new products, particularly in the rapidly growing field of minimally invasive spine surgery."
Integra Spine expects to launch the Paramount(R) MIS / Open system in the first quarter of 2010. The Paramount(R) MIS Fusion System participates in a market with an estimated value of $678M, according to a 2009 iData Research Report. Minimally invasive fixation systems offer surgeons an opportunity to deliver pedicle screws with a small incision, potentially reducing blood loss and recovery time. The Paramount(R) MIS system offers an elegant one-step solution for rod and screw delivery.
IST reported that it generated approximately $2.2 million of revenue in 2008, but that in January of 2009, it ceased operations. On May 15, 2009, IST filed for Chapter 7 bankruptcy protection in the District of Massachusetts. The acquisition is the result of an auction process conducted by the Chapter 7 trustee and approved by the United States Bankruptcy Court for the District of Massachusetts.
This acquisition is expected to be neutral to Integra's earnings in 2010. Integra expects to provide further guidance regarding the financial aspects of the transaction, including the impact of purchase accounting and acquisition and integration related charges, on its third quarter earnings results conference call in November.
Integra LifeSciences Holdings Corporation, a world leader in regenerative medicine, is a global medical device company dedicated to improving the quality of life for millions of patients every year. Our products are used primarily in orthopedics, neurosurgery and general surgery. Headquartered in Plainsboro, New Jersey, Integra has research and manufacturing facilities throughout the world. For more information, visit www.Integra-LS.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning expectations for the strategic benefits that this acquisition will provide to Integra. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted or expected results. Among other things, Integra's ability to integrate the IST business successfully into its own operations could affect the extent of the strategic benefits that Integra generates from this acquisition. In addition, the economic, competitive, governmental, technological and other factors identified under the heading "Risk Factors" included in Item 1A of Integra's Annual Report on Form 10-K for the year ended December 31, 2008 and information contained in subsequent filings with the Securities and Exchange Commission could affect actual results.
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SOURCE: Integra LifeSciences Holdings Corp.
CONTACT: Integra LifeSciences Holdings Corporation John B. Henneman, III, Executive Vice President, Finance and Administration, and Chief Financial Officer (609) 936-2481 jhenneman@Integra-LS.com Investor Relations: Angela Steinway (609) 936-2268 angela.steinway@Integra-LS.com
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