Full Press Release Details
Medical Acquires Coflex Product Line from Surgalign for $17 Million
Xtant's Product Offering with the Leading PMA-Approved Intralaminar Stabilization Device
Surgalign's Balance Sheet as it Embarks on its Digital Health Strategy
MT and DEERFIELD, ILL., March 1, 2023 - Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company
focused on surgical solutions for the treatment of spinal disorders, and Surgalign Holdings, Inc., (NASDAQ: SRGA), a global medical technology
company focused on elevating the standard of care by driving the evolution of digital surgery, today announced the completion of a transaction
between the companies.
February 28, 2023, Xtant Medical and Surgalign entered into a Definitive Agreement and subsequently closed on the transaction whereby
Xtant acquired the Coflex and Cofix product lines from Surgalign for a total consideration of $17 million.
is an interlaminar stabilization device used after an open decompression that can be performed in various settings, offering a non-fusion
treatment option for lumbar spinal stenosis (LSS) patients. The number of patients diagnosed globally with LSS is approximately 2.4 million
representing the largest single-growing patient demographic in spine. The Coflex device is the only FDA PMA-approved implant for the
treatment of LSS, has been implanted in more than 200,000 patients in over 60 countries, is clinically validated with more than 90 peer
reviewed publications and has established Ambulatory Surgery Center (ASC) reimbursement. Cofix is a supplemental fixation device, which
is a minimally invasive system intended for use on all levels of the lumbar spine.
are thrilled to acquire the Coflex and Cofix product lines, which will help accelerate our top-line growth and position Xtant to achieve
critical mass," said Sean Browne, President and CEO of Xtant Medical. "Coupled with our less invasive Axle interspinous device
and Silex SI Fusion product lines, Coflex augments our offering in the fast-growing segments of ASC and outpatient procedures. Aligning
with our key growth pillars, this acquisition expands our footprint by adding new distributors and a significant number of trained surgeons
to the Company's network. We expect these products to add approximately $14 million in annual revenue and attractive margins to
enable Xtant to achieve profitability in the near future."
Rich, President and Chief Executive Officer of Surgalign, stated, "We believe that Coflex and Cofix are great products for patients
and with Xtant, we have found the right partner that will continue the legacy and drive value for all customers. This transaction provides
us with non-dilutive capital which will be used to advance our leading platform of artificial intelligence products across the entire
continuum of care. Moving forward, we are focused on commercializing our HOLO Portal Surgical Guidance System, our soon to be launched
HOLO AI Insights for research-use, and further developing our HOLO AI platform, while driving innovation in our remaining product lines
to improve patient outcomes."
Investment Bank served as exclusive financial advisor and DLA Piper LLP served as legal counsel to Surgalign and Fox Rothschild LLP served
as legal counsel to Xtant in connection with this transaction.
Xtant Medical Holdings, Inc.
Medical Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development, and commercialization
of a comprehensive portfolio of orthobiologics and spinal implant systems to facilitate spinal fusion in complex spine, deformity and
degenerative procedures. Xtant people are dedicated and talented, operating with the highest integrity to serve our customers.
symbols and denote trademarks and registered trademarks of Xtant Medical Holdings, Inc. or its affiliates, registered as
indicated in the United States, and in other countries. All other trademarks and trade names referred to in this release are the property
of their respective owners.
Surgalign Holdings, Inc.
Holdings, Inc. is a global medical technology company committed to the promise of digital health to drive transformation across the surgical
landscape. Uniquely aligned and resourced to advance the standard of care, the company is building technologies physicians and other
health providers will look to for what is truly possible for their patients. Surgalign is focused on developing solutions that predictably
deliver superior clinical and economic outcomes. Surgalign markets products throughout the United States and in approximately 50 countries
worldwide through an expanding network of top independent distributors. Surgalign is headquartered in Deerfield, IL, with commercial,
innovation and design centers in San Diego, CA, Warsaw and Poznan, Poland, and Wurmlingen, Germany. Learn more at www.surgalign.com and
connect on LinkedIn and Twitter.
Statement Regarding Forward-Looking Statements
press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
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believes,'' estimates,'' "continue," "future," will,''
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their impact on the Company's future growth strategy, operating results and financial performance. The Company cautions that its
forward-looking statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety
of important factors, including, among others: the Company's future operating results and financial performance; the ability to
increase or maintain revenue; possible future impairment charges to long-lived assets and goodwill and write-downs of excess inventory
if revenues continue to decrease; the ability to remain competitive; the ability to innovate, develop and introduce new products; the
ability to engage and retain new and existing independent distributors and agents and qualified personnel and the Company's dependence
on key independent agents for a significant portion of its revenue; the effect of the COVID-19 pandemic and hospital staffing shortages
on the Company's business, operating results and financial condition, especially when they affect key markets; the Company's
ability to implement successfully its future growth initiatives and risks associated therewith; the effect of product sales mix changes
on the Company's financial results; government and third-party coverage and reimbursement for Company products; the ability to
obtain and maintain regulatory approvals and comply with government regulations; the effect of product liability claims and other litigation
to which the Company may be subject; the effect of product recalls and defects; the ability to obtain and protect Company intellectual
property and proprietary rights and operate without infringing the rights of others; the ability to service Company debt, comply with
its debt covenants and access additional indebtedness; the ability to obtain additional financing on favorable terms or at all; and other
factors. Additional risk factors are contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021
filed with the Securities and Exchange Commission (SEC) on March 8, 2022 and subsequent SEC filings by the Company. Investors are encouraged
to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties.
The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. All forward-looking statements
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