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.