“Today’s announcement marks continued execution of our vision to reposition Alphatec as the most respected, fastest-growing company in U.S. spine,” said Rich. “Pat and Quentin have decades of industry experience and well-deserved reputations that speak for themselves. Their personal financial commitments are a powerful testament to their personal commitments to increase shareholder value; a conviction that has been expressed by our entire leadership team. Pat is a globally recognized spine visionary and a proven driver of market-share expansion. His passionate belief that our most important business is in the operating room aligns absolutely with the Alphatec value system, and positions him extraordinarily well to lead the organization. I have great confidence that Pat’s influence on daily operations, product development decisions, and surgeon engagement will accelerate the business transformation that we are driving. I look forward to partnering with him to advance Alphatec’s growth trajectory by executing our mission to improve patient lives.”
Miles brings a wealth of orthopedics and innovation expertise, with over 25 years of industry experience, and as a named inventor on close to 100 industry patents. In his capacity as executive chairman, he will be fully engaged, focusing primarily on further defining and implementing Alphatec’s strategic initiatives, expanding and fortifying the company’s relationships with surgeon customers, and leading Alphatec’s new technology development. Miles joins Alphatec following a 17-year tenure at NuVasive Inc., where he was a central figure in the company’s expansion from a startup business to a global spine corporation with close to $1 billion in revenues. He most recently served as NuVasive’s vice chairman; prior to that, he was its president and chief operating officer, and president of global products and services. Before joining NuVasive, Miles held sales and marketing roles with Medtronic Sofamor Danek and Smith & Nephew plc.
"I am thrilled to work closely with Terry once again to reposition Alphatec as the next great growth story in spine. Together, we share roughly 50 years of spine and orthopedics expertise—a level unrivaled in spine leadership—which will guide us in determining how best to serve this market. I look forward to driving toward improved surgical outcomes and market share expansion,” said Miles. “Alphatec has a broad and impressive product portfolio, improving surgeon engagement, and great access to hospitals; all of which position the company exceptionally well to take market share in today’s environment. This is a high-caliber team driving an important mission, and I feel incredibly lucky to be a part of it.”
Blackford joins the Alphatec Board of Directors with 17 years of experience in the medical device industry. He is currently executive vice president and chief financial officer (CFO) of DexCom Inc. Prior to joining Dexcom, Blackford was executive vice president, CFO, head of Strategy and Corporate Integrity for NuVasive. In that role, he led the finance, strategy and corporate development, compliance, and regulatory functions. Before joining NuVasive in 2009, Blackford held various leadership roles with Zimmer Holdings Inc., including director of finance and controller for Zimmer Dental.
“Alphatec has assembled an exceptional team of spine industry leaders who are already transforming the business. I am excited to help shape the company’s strategic direction as Alphatec evolves into a leading spine player,” said Blackford.
In connection with these appointments, Mortimer Berkowitz III, Alphatec’s chairman since December 2016, will transition into the role of lead director. In addition, Stephen O’Neil has resigned from his position as a member of the company’s board, effective immediately. Rich will also remain a key member of the Alphatec Board.
Berkowitz, said, “I would like to thank Steve for his 12 years of dedicated service to Alphatec, and for being a trusted colleague and counselor. I also enthusiastically welcome Pat and Quentin to the Alphatec family, and thank Terry for his efforts in bringing them aboard. They share the optimism and the vision that we have for the future of this company, and I look forward to serving with them in the lead director role.”
As an inducement to accepting employment with the company, and in accordance with applicable NASDAQ listing requirements, the Board of Directors has also approved an award to Miles of 1 million restricted stock units (RSUs).
Miles has agreed to purchase 1.3 million shares of common stock and Blackford has agreed to purchase at least 220,000 shares of common stock and up to 440,000 shares of common stock, all at a purchase price of $2.26 per share (the consolidated closing bid price of Alphatec common shares on Sept. 29), for gross proceeds to the company of between $3.5 million and $4 million. The share purchases are expected to close on or before Jan. 1, 2018. In connection with his purchase of Alphatec common stock, at the closing, Miles will also receive a five-year warrant to purchase up to 1.3 million shares of common stock at a purchase price of $5 per share which, if exercised, will generate additional gross proceeds to the company of $6.6 million.
Alphatec Holdings Inc., through its wholly owned subsidiary Alphatec Spine Inc., designs, develops, and markets spinal fusion technology products and solutions for the treatment of spinal disorders associated with disease and degeneration, congenital deformities, and trauma. The company markets its products in the United States via independent sales agents and a direct sales force.