Full Press Release Details
OrthoPediatrics Corp. Announces Acquisition
of ApiFix Ltd. with FDA-Approved Non-Fusion Scoliosis Technology
Expands portfolio of spinal deformity
systems with unique, less invasive, non-fusion surgical solution for progressive adolescent idiopathic scoliosis
Company to host a conference call tomorrow
April 2 at 8:30am ET
April 1, 2020 - OrthoPediatrics Corp. ("OrthoPediatrics" or the "Company")
(Nasdaq:KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, is pleased to announce that it has
acquired ApiFix Ltd. ("ApiFix"), including its minimally invasive deformity correction (MID-C) system for non-fusion
treatment of progressive adolescent idiopathic scoliosis (AIS), for 934,768 shares of OrthoPediatrics common stock and $2 million
in cash paid at closing, plus milestone payments and an earnout over a period of four years.
Ltd. is an Israel and Boston, MA based medical device company with a less invasive spinal
deformity correction system for non-fusion treatment of progressive AIS. Together with vertebral
body tethering, it is one of only two non-fusion technologies approved by the U.S. Food and Drug Administration under its
Humanitarian Device Exemption provision. The MID-C system is approved for use in adolescent patients with Lenke type 1 and Lenke
type 5 curves of 40 to 60 and acts as an internal brace implanted unilaterally on the concave aspect of the curvature.
It becomes OrthoPediatrics' 35th surgical system. When compared to both traditional spinal fusion and tethering
procedures, the benefits of the MID-C system include measurable reductions in surgery time, blood loss, hospitalization, recovery
time, complications, and revision rates. Most significantly, the system avoids permanently limiting range of motion in these young
patients with its motion-preserving capabilities and is removable.
Throdahl, President and Chief Executive Officer of OrthoPediatrics, commented, "We believe that ApiFix fills a major
treatment gap that could potentially allow patients to avoid fusion surgery. We estimate that non-fusion procedures will grow
significantly as patients, their families, and surgeons recognize non-fusion's benefits. With an 8-year clinical history of more than 370 patients outside the US, the ApiFix system has a number
of advantages over vertebral body tethering. It is significantly less complex and risky, does not imply the need for a
thoracic or general surgeon, and has fewer complications. The acquisition of this novel technology keeps OrthoPediatrics at
the forefront of pediatric orthopedic care with a viable alternative to failed bracing and spinal fusion for the treatment of
progressive scoliosis. We are also pleased to announce a major acquisition at this time which significantly enhances our
long-term strategic position."
Paul Mraz, Chief Executive Officer of ApiFix,
added, "We are excited with the opportunity to grow our business with the leader in the global pediatric community. The recent
FDA approval of the MID-C system provides notable treatment advancements for young patients who would benefit from an alternative
solution that fills the gap between non-operative therapies and irreversible spinal fusion. ApiFix's MID-C technology is
a posterior dynamic deformity correction system that enables surgeons to perform a unique treatment providing permanent curve correction
while retaining spine flexibility, all via a less invasive surgical procedure. We look forward to OrthoPediatrics' ability
to increase awareness and utilization of a system that is poised to disrupt the continuum of care for scoliosis treatment in pediatric
ApiFix s unique technology is supported
by strong intellectual property protection, including 46 US and International patents granted and 25 patent applications. The company
is led by Paul Mraz, a Boston-based executive with nearly 30 years of spine and orthopedic medical device experience. Mr. Mraz
and the entire ApiFix team have joined OrthoPediatrics post-acquisition.
Stifel Nicolaus & Company, Incorporated
acted as financial advisor to OrthoPediatrics' Board of Directors. Dentons Bingham Greenebaum LLP served as legal counsel
to OrthoPediatrics on the transaction. Shibolet & Co. Law Firm and Wyrick Robbins served as legal counsels to ApiFix.
Conference Call and Webcast Information
OrthoPediatrics will hold a conference
call and webcast tomorrow, April 2, 2020 at 8:30 a.m. ET to discuss the acquisition, followed by a question and answer session.
To listen to the live conference call, please dial (855) 289-4603 for domestic callers and (614) 999-9389 for international callers.
The conference ID number is 5498521. A live webcast of the conference call will be available online from the investor relations
page of the OrthoPediatrics' corporate website at www.orthopediatrics.com.
A replay of the webcast will remain available
on OrthoPediatrics' website, www.orthopediatrics.com. In addition, a telephonic replay of the call will be available until
April 9, 2020. The replay dial-in numbers are (855) 859-2056 for domestic callers and +1 (404) 537-3406 for international callers.
Please use the replay conference ID number 5498521.
Founded in 2011, ApiFix Ltd. is a privately
held medical device company based in Misgav, ISRAEL and Boston, Massachusetts, USA and is a portfolio company of The Trendlines
Group Ltd. (SGX: 42T; OTCQX: TRNLY). ApiFix is a leading motion-preservation scoliosis correction company developing a unique platform
technology that represents a disruptive approach to spine deformity treatment. ApiFix's Minimally Invasive Deformity Correction
(MID-C) system has FDA and CE Mark approvals and is now available in the USA, Canada, Europe, Israel and Singapore. More information
is available at www.apifix.com.
About OrthoPediatrics Corp.
Founded in 2006, OrthoPediatrics is an
orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive
product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics
currently markets 35 surgical systems that serve three of the largest categories within the pediatric orthopedic market. This product
offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics' global sales organization
is focused exclusively on pediatric orthopedics and distributes its products in the United States and 43 countries outside the
United States. For more information, please visit www.orthopediatrics.com.
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of
words such as "may," "might," "will," "should," "expect," "plan," "anticipate,"
"could," "believe," "estimate," "project," "target," "predict," "intend,"
"future," "goals," "potential," "objective," "would" and other similar expressions.
Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics' control. Important
factors could cause actual results to differ materially from those in the forward-looking statements, including, among others:
the risks related to COVID-19, the impact such pandemic may have on the demand for our products, and our ability to respond to
the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics'
Annual Report on Form 10-K filed with the SEC on March 5, 2020, as updated and supplemented by our other SEC reports filed from
time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update
forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements
except to the extent required by applicable securities laws.
Tram Bui / Emma Poalillo
(646) 536-7035 / 7024