Alphatec Spine to Collaborate with Spine Surgeon Group

Alphatec Holdings Inc. the parent company of Alphatec Spine, Inc., is partnering with a spine surgeon group to develop future devices and help commercialize the company’s product portfolio.

“This strategic alliance illustrates Alphatec’s continued commitment to providing physician-inspired solutions to treat conditions of the spine and help enhance the quality of life for patients,” Alphatec Spine Chairman/CEO Les Cross said. “By leveraging the unique strengths of each partner, we should significantly advance our product portfolio and product lifecycle plans through the development of innovative products and effective healthcare solutions.”

Under the terms of the three-year collaboration agreement, Alphatec Spine will gain exclusive rights to the use of all intellectual property developed by the surgeon group under the collaboration. Additional terms include:

• The company will make three annual payments to the physicians as sole consideration for services provided, totaling an aggregate of $8 million, paid in common stock of Alphatec Holdings at a per share price equal to the average NASDAQ closing price of the common stock on the five days leading up to and including the date of signing of the collaboration agreement.

• Before each annual payment is made, the Company is permitted to withhold a portion of the payment if the physicians do not adequately perform the required services for that annual period.

• The agreement does not provide for any cash consulting or future royalty payments to the physician collaborators.

Alphatec Spine, a wholly owned subsidiary of Alphatec Holdings Inc., develops spinal devices to treat traumatic injuries, congenital deformities, disease and disc degeneration. The company is based in Carlsbad, Calif.