CARLSBAD, Calif., Oct. 23, 2012 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., announced today that the Company has signed a new supply agreement that provides the Company with exclusive worldwide rights to market, sell and distribute an anchored, zero-profile anterior cervical interbody device.
The device's 510(K) application is currently under review by the U.S. Food and Drug Administration (FDA) for market clearance. Pursuant to the agreement, Alphatec Spine will pay an upfront fee over the next 12 months and has agreed to certain minimum purchase commitments. The market for cervical interbody devices is estimated to be $465 million. The anchored interbody device market is the fastest growing segment of the cervical interbody market and is estimated to currently be approximately $47 million.
"I am pleased to announce this new supply agreement. While we compete in the cervical interbody market with certain of our Novel PEEK spacers and structural allograft products, the addition of an anchored, zero-profile cervical interbody device will add depth to our cervical portfolio with surgeons who have adopted this technology," said Les Cross, Chairman and CEO of Alphatec Spine."When I became CEO of Alphatec Spine earlier this year, I laid out a clear strategy to strengthen the sales and profitability of the organization. We have focused on streamlining our internal operations to strengthen margins and shorten the cycle time for developing and commercializing new products. I also recognized Alphatec's need to simultaneously scale our business through acquisitions of companies and new products to further accelerate top-line growth. While it has been my ongoing expectation that it will take time to yield meaningful and positive impacts to our revenue growth, we are building a new and stronger foundation that should strengthen future revenue growth and lower our cost structure through decreased manufacturing and operating costs to enhance our margins."