A Medical Device Daily
Alphatec Holdings (Carlsbad, California), a developer of surgical systems used to treat spinal disorders, reportedly will move ahead this week with its initial public offering (IPO) of up to $149.5 million in common stock. The company initially made its Securities and Exchange Commission filing for the offering in February (Medical Device Daily, Feb. 15, 2006).
Through its Alphatec Spine subsidiary, the company makes products for the U.S. spine fusion market. Its FDA-approved products includes spinal implant systems consisting of spinal spacers, screws, plates and other components.
Alphatec Spine focuses on selling its products to about 15,000 U.S. surgeons through a network of independent distributors, as well as a direct sales force. The company also sells spine fusion and orthopedic trauma devices in Japan through its Alphatec Pacific subsidiary.
Alphatec Holdings purchased the assets of Cortek (Dedham, Massachusetts), a manufacturer of allografts in late 2005 (MDD, Sept. 16, 2005), thereby adding Cortek's allograft and synthetic products for spinal interbody fusion and the instrumentation required for implementation.
Alphatec plans to have its common stock approved for quotation on the Nasdaq under the symbol ATEC.
It said it will use the proceeds from the offering to expand sales and marketing, fund the approval of near-term product candidates, support R&D, pay down and retire debt, and for general corporate purposes, such as future acquistions.
Alphatec also said it plans to use proceeds from the offering satisfy redemption, dividend and liquidation obligations to existing stockholders.
First Albany Capital was listed as underwriter for the offering.
Sequenom (San Diego) reported that its stockholders have approved the company's private placement financing to raise gross proceeds of $33 million through commitments from ComVest Investment Partners, Pequot Private Equity Fund IV, LB I Group (an affiliate of Lehman Brothers), and Siemens Venture Capital.
The financing, which is subject to closing conditions, is expected to close tomorrow, according to the company.
Sequenom said that the proceeds from the financing will be used as general working capital.
Upon closing, Larry Lenig Jr. of ComVest and Patrick Enright of Pequot will join Sequenom's board.
Harry Stylli, PhD, president and CEO of Sequenom, said the new cash “will provide us with the financial runway to . . . grow our core business of providing outstanding genetic analysis solutions for our customers, and at the same time execute on our synergistic noninvasive prenatal and molecular diagnostics initiatives.”
Stockholders yesterday also approved other measures, including: a reverse stock split ranging from 1-for-2 to 1-for-6, the election of two directors, authorization of common stock to 185 million shares and the Audit Committee's selection of Ernst & Young as the company's independent registered public accounting firm for 2006.
Sequenom's MassARRAY system is a DNA analysis platform that measures the amount of genetic target material and variations therein. The system is able to deliver reliable and specific data from complex biological samples and from genetic target material that is only available in trace amounts.
In other financing activity: Hanger Orthopedic Group (Bethesda, Maryland) reported that it has purchased $190,397,000 principal amount of its outstanding 10-3/8% senior notes, due 2009, and $15,485,000 principal amount of its outstanding 11-1/4% senior subordinated notes, due 2009. As a result, the supplemental indentures dated as of May 22 became operative on May 26.
The tender offer is scheduled to expire at 11:59 p.m., EST, June 6, unless such date is extended or earlier terminated. Holders who tender their notes at or prior to the expiration date will be eligible to receive only the tender offer consideration set forth in the offer to purchase and consent solicitation statement.
Lehman Brothers and Citigroup Corporate and Investment Banking are the co-dealer managers for the offers and co-solicitation agents for the consent solicitations.
Hanger is a provider of orthotic and prosthetic patient care services, owning and operating 621 patient care centers in 46 states including the District of Columbia. Hanger's two key operating units are patient care, consisting of nationwide orthotic and prosthetic practice centers; and distribution which consists of distribution centers managing the supply chain of orthotic and prosthetic componentry to Hanger and third party patient care centers.