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February 2-4, 2017


December 4, 2018 OrthoSpineNews

Kalamazoo, Michigan, Dec. 04, 2018 (GLOBE NEWSWIRE) — Kalamazoo, Michigan – December 4, 2018 – Stryker Corporation (NYSE:SYK) announced that its Board of Directors has declared a quarterly dividend of $0.52 per share payable on January 31, 2019 to shareholders of record at the close of business on December 31, 2018, representing an increase of approximately 11% versus the prior year and the previous quarter.

“We continue to deliver strong financial results, and consistent with our stated capital allocation philosophy, are raising our dividend 11%,” said Kevin A. Lobo, Chairman and Chief Executive Officer.

Stryker is one of the world’s leading medical technology companies and, together with its customers, is driven to make healthcare better. The company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient and hospital outcomes. More information is available at


For investor inquiries please contact:
Katherine A. Owen, Stryker Corporation, 269-385-2600 or

For media inquiries please contact:
Yin Becker, Stryker Corporation, 269-385-2600 or


December 4, 2018 OrthoSpineNews

December 2, 2018 / Special to the Herald Times / By DOC WATSON

MEEKER, CO | The primary emphasis of the Nov. 27 Pioneers Medical Center board meeting was the future vision held by both staff and board in the areas of orthopedics as well as hospital expansion.

In preparation for that discussion, Development Director Margie Joy outlined PMC’s Strategic Plan for 2019–2022, elaborating on five focus areas: quality (excelling in all we do); finance (breaking even in 2020); growth (meeting the needs of local healthcare, such as orthopedics); people (being a premiere employer); and community (being a leader in public health concerns, such as tobacco, alcohol, suicide prevention, etc.). Also presented was the 2019 budget with projected revenues of $30.313 million and projected operating expenses of $26.633 million. The projected revenues are actually a 20.6 percent increase driven mainly by orthopedic surgeries. After other factors are figured in, the net projected income is $2.706 million.

The meeting then turned to the future vision. Meeker’s own Dr. Kevin Borchard—a highly acclaimed, board certified (American Academy of Orthopedic Surgeons) orthopedic surgeon—was on hand to propose the purchase of the Mako Total Knee Robotic-Arm to assist in knee surgeries. This $1 million piece of technology guarantees greater accuracy and precision in planning and performing knee replacement than manual technique. It also replaces several other surgical instruments and makes the job much easier for the surgeon and assistants.

While there are currently three locations on the Western Slope that have robotic surgery, none of them have joint fellowship-trained surgeons such as Dr. Borchard (and Dr. Dan Ward). “This, coupled with zero percent infection rate, low remission rate and short length of stay (in the hospital), would make Pioneers probably the top place on the Western Slope to get a joint replacement,” Borchard said.

This discussion then led to another need this robotic advancement and patient increase will demand, namely, building expansion. Joy elaborated on this by presenting three options. The most practical and cost effective one is option two, an approximately $7.7 million expansion that will add two operating rooms, three recovery rooms, six hospital rooms and additional clinic space.





November 27, 2018 OrthoSpineNews

Kalamazoo, Michigan, Nov. 27, 2018 (GLOBE NEWSWIRE) — Stryker (NYSE:SYK) announced today that it has priced the following notes: (i) €550 million aggregate principal amount of the Company’s 1.125% Notes due 2023 (the “2023 Notes”), (ii) €750 million aggregate principal amount of the Company’s 2.125% Notes due 2027 (the “2027 Notes”), (iii) €650 million aggregate principal amount of the Company’s 2.625% Notes due 2030 (the “2030 Notes”) and (iv) €300 million aggregate principal amount of the Company’s Floating Rate Notes due 2020 (the “Floating Rate Notes” and together with the 2023 Notes, 2027 Notes and 2030 Notes, the “Notes”).  Unless previously redeemed pursuant to their terms, if applicable, the 2023 Notes will mature on November 30, 2023, the 2027 Notes will mature on November 30, 2027, the 2030 Notes will mature on November 30, 2030 and the Floating Rate Notes will mature on November 30, 2020.  The Notes are expected to settle on November 30, 2018, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the offering for general corporate purposes, including the repayment of all of the $500 million principal amount of outstanding 1.800% Notes due January 15, 2019 at maturity and the repayment of all of the $750 million principal amount of outstanding 2.000% Notes due March 8, 2019 at maturity, as well as the repayment of any commercial paper then outstanding.

Barclays Bank PLC, BNP Paribas, Goldman Sachs & Co. LLC and J.P. Morgan Securities plc are acting as active joint book-running managers for the offering. This offering was made pursuant to a prospectus supplement, filed today, to the Company’s prospectus, dated February 12, 2016, filed as part of the Company’s effective shelf registration statement. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the notes may be obtained by contacting: (i) Barclays Bank PLC, 5 The North Colonnade, Canary Wharf, London E14 4BB, United Kingdom, or by calling 1-888-603-5847 or emailing, (ii) BNP Paribas, 10 Harewood Avenue, London NW1 6AA, United Kingdom, or by calling 1-800-854-5674, (iii) Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, or by calling (866) 471-2526, by faxing (212) 902-9316 or emailing or (iv) J.P. Morgan Securities plc, 25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom, or by calling collect on +44-207-134-2468.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Forward-looking statements

This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; potential supply disruptions; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to the Rejuvenate and ABG II recall matter; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; the impact of the federal legislation to reform the United States healthcare system; changes in financial markets; changes in the competitive environment; our ability to integrate acquisitions; and our ability to realize anticipated cost savings. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Stryker is one of the world’s leading medical technology companies and, together with its customers, is driven to make healthcare better. The Company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient and hospital outcomes.


For investor inquiries please contact:
Katherine A. Owen, Stryker, 269-385-2600 or

For media inquiries please contact:
Yin Becker, Stryker, 269-385-2600 or


November 27, 2018 OrthoSpineNews

November 27, 2018

LYON, France & NEW YORK–(BUSINESS WIRE)–The Medicrea Group (Euronext Growth Paris: FR0004178572- ALMED ; OTCQX Best Market – MRNTY & MRNTF), pioneering the transformation of spinal surgery through Artificial Intelligence, predictive modeling and patient specific implants with its UNiD™ ASI (Adaptive Spine Intelligence) proprietary software platform, services and technologies, today announced the closing of a $30 million senior secured notes issue by Medicrea and wholly subscribed by Perceptive Advisors, a leading multi-strategy healthcare investment firm. In conjunction with the senior secured notes, Medicrea has issued to Perceptive Advisors warrants for the Company’s new ordinary shares.

Denys Sournac, Chairman of the Board of Directors and Chief Executive Officer, states “We are glad to execute this financing with Perceptive Advisors. The new secured notes will give us the necessary capital to continue to fuel our UNiD™ ASI growth strategy in the United States and will give us the required funds to continue the development of other proprietary products. We look forward to working with Perceptive, one of the leading healthcare focused investment firms in the world. We believe this refinancing is another validation of our proprietary, patient specific technology focused on restoring sagittal and coronal alignment.”

Sam Chawla, Portfolio Manager at Perceptive Advisors states, “We are excited about this investment in Medicrea. This refinancing retires most of the Company’s existing debt, and gives the company the financial flexibility to accelerate UNID™ ASI adoption. The company has a unique service and product offering in the Spine market and has delivered superior patient outcomes. With a clean capitalization, simplified balance sheet, and excess cash, Medicrea has a significant opportunity to grow over the coming years.”

Key Terms of the Notes

The refinancing facility will consist of $30 million senior secured and guaranteed notes, governed by New-York law with coupon based on the greater of Three-Month LIBOR or 2.5% plus a margin of 8.5%. The notes will be issued at par value on the 27th of November 2018, the expected date for the settlement and delivery, and will mature on the 27th of November 2022. The notes will be guaranteed by Medicrea USA Corp, a 100 % fully owned subsidiary of Medicrea and will be secured by pledges on certain assets and receivables of the Group.

This refinancing will help Medicrea fund its UNiD ASI growth strategy in the United States as well as continue to focus on new product development. Five years after its initial launch in September 2013, over 3,000 patients have benefited from UNiD™ ASI 100% proprietary pre-operative planning technologies and services associated with patient-specific spinal realignment rods. UNiD products have seen a strong acceleration in adoption rate in 2018 especially in the USA (+62% cases year-to-date 2018 and +90% in Q3 2018).

Medicrea has also retired all of its outstanding €15 million convertible debt with Athyrium Capital Management and will use the proceeds to pay down portions of other secured outstanding debt for a total amount of €1.55 million.

Medicrea believes this refinancing (excluding the exercise of the warrants) should support the development of the Company until it reaches operational profitability.

Key Terms of the Warrants

Perceptive Credit Holdings II,LP subscribed to 1,000,000 warrants. The settlement and delivery of the warrants should take place on the 27th of November, 2018. These warrants will not be subject to a request for admission to trading on the Euronext Growth market in Paris and will therefore not be listed.

One warrant entitles its holder to subscribe to one new Medicrea International ordinary share, at an exercise price of € 2.19, corresponding to the volume-weighted average of the share prices of the last 10 trading days prior to the fixing of the subscription price, decreased by a 10 % discount pursuant to the 14th resolution of the General Meeting of May 17, 2018. The warrants will be exercisable for a period of seven years after their issuance.

The new shares to be issued upon exercise of the warrants will carry current dividend rights and will be tradable on Euronext Growth and will be listed on the same line as the existing shares (ISIN : FR0004178572).

The shares that would be issued in the event of the exercise of all the warrants represent 4.93% of the Company’s share capital as of today (on a fully diluted basis).

For illustrative purposes, the interest of a shareholder holding 1% of the share capital of Medicrea would be brought to 0.94% if all the warrants were to be exercised.





November 27, 2018 OrthoSpineNews

November 27, 2018

SAN CLEMENTE, Calif.–(BUSINESS WIRE)–Verrix, a medical device company developing solutions for rapid and accurate sterilization confirmation, has completed an initial close on a Series B funding round for $8 million, which will bring the company’s total funds raised to $17.5 million. The Series B funding will allow the company to finalize development, regulatory submission, and commercialization of its Verrix EVA™ Biological Indicator (BI) System.

“We are excited to see the rapid advancement of Verrix with strong support from our investors,” said Cameron Rouns, CEO of Verrix. “The company has achieved significant progress in the development of the Verrix EVA™ BI System and is well positioned to successfully transition to commercialization as it prepares to introduce new technology for the fight against hospital acquired infections.”

Biological indicator systems are used to verify the success of sterilization cycles and detect failures, as inadequately sterilized surgical instruments and implants are a major contributor to infection outbreaks in hospitals. Despite a strong focus on improvements in infection control practices and advancements in technology, 1.7 million hospital acquired infections (HAIs) occur every year in the U.S.,1 resulting in a $28-45 billion impact to the healthcare system.2 Recognizing that up to 70 percent of HAIs are preventable,2 Verrix technology is taking a new approach to sterilization monitoring to deliver BI results with unprecedented speed and accuracy.

Verrix was founded as a standalone company in 2013 to develop sterility assurance products and technologies based on planetary protection technology developed at NASA’s Jet Propulsion Laboratory for the Mars Rover program. In 2016, Verrix closed a Series A round of funding to develop the technology from patented concept to prototype. Verrix is now transitioning from research and development to commercialization of its unique method of spore detection. The first BI system developed based on Verrix’s technology advances is expected to be introduced in 2019.

To learn more about the history of Verrix, click here.

About Verrix

Verrix is a San Clemente, Calif.-based medical device company that is using the most advanced technologies to help protect patients from healthcare-associated infections. The foundational sterility assurance technology, originally discovered at NASA’s Jet Propulsion Laboratory, integrates cutting-edge optical physics, chemistry spectroscopy, and molecular biology. Based on scientific expertise and close partnerships with healthcare professionals, Verrix is developing market-changing solutions for sterility assurance, environmental monitoring, and infection control. Visit for more information.


  1. Klevens RM, Edwards JR, Richards CL, et al. Estimating health care-associated infections and deaths in U.S. hospitals, 2002. Public Health Rep. 2007;122(2):160-166.
  2. Stone P.W. Economic burden of healthcare-associated infections: an American perspective. Expert Rev Pharmacoecon Outcomes Res. 2009;9:417-422.


Media Contact
Andrea Sampson, Sullivan & Associates

Erin Manning, Vice President, Marketing, Verrix


November 21, 2018 OrthoSpineNews

NEW YORK, Nov. 21, 2018 (GLOBE NEWSWIRE) — The global ambulatory surgical centers (ASCs) market was valued at USD 77.1 billion in 2017 and is expected to reach USD 97.3 billion by 2024, at a CAGR of 3.5%. The growth is primarily attributed to the growing number of surgeries performed in ASCs and growing incidence of accidental cases. There are several advantages of using ambulatory surgical centers such as the personal attention, the patient receive and the lack of exposure to a wide range of infections. This is also one of the reason that ASCs market is expected to increase in coming years globally.

Ambulatory surgery centers (ASCs) are providing surgical and emergency care services on an outpatient basis. It offers improved patient care quality along with the reduction in healthcare cost. The growth of this industry is attributed to increasing prevalence of acute and chronic diseases and growing incidence of accidental cases across the globe. Patients are opting for ambulatory services owing to rising burden of treatment cost and better outcomes with higher patient satisfaction. Moreover, technological advancements in the surgical techniques have allowed increasing number of procedure performed in ASCs. Furthermore, as healthcare industry and investors look for new methods to cut costs, an ambulatory surgical center offers additional benefits as compared to hospitals. The lower rate of infections and cost effectiveness of ASCs will drive the ambulatory surgical centers market over the forecast period.

Global Ambulatory Surgical Centers Market Regional Insight

Geographically, North America held the largest market share of the global market in 2017. The growth in the region is attributed to the growing investments in ASCs by major private healthcare companies and patients adopting minimally invasive therapies. Europe held the second largest share of the global market owing to higher volume of orthopedic surgery, and high number of eyes disorders. Additionally, local governments of this region are also promoting the adoption of ASCs. Asia-Pacific is expected to be the fastest growing market due to growing number of aging population and increasing accidental cases and more chronic conditions are expected to propel the market growth in this region.

Browse full research report with TOC on “Global Ambulatory Surgical Centers Market Outlook, Trend and Opportunity Analysis, Competitive Insights, Actionable Segmentation & Forecast 2024” at:

To purchase report:

Key findings from the report:

  • On the basis of specialty, the multi-specialty surgical centers segment held the share of the market in 2017. The growth is attributed to growing number of surgeries procedure performed, and people moving towards multi-specialty surgical centers due to presence of highly skilled and qualified surgeons, nurse, and staff.
    • On the basis of multi-specialty surgical centers, the orthopedic segment held the major share of the market
  • On the basis of services, the surgical services held the major share of the market in 2017, and expected to continue its dominance over the forecast period
    • Based on the ownership type, the physician only, segment held the major share of the market in 2017
  • Geographically, North America held the largest share of the global market in 2017 and the trend is likely to continue over the forecast period
  • Some of the key companies operating in the market include, Proliance Surgeons, Inc., Tenet Healthcare Corporation, Regent Surgical Health, Surgical Management Professionals, ASD Management, United Surgical Partners International, Symbion Pty Ltd., AmSurg Corp., Medical Facilities Corporation, Ambulatory Surgical Centers of America, and HCA Healthcare, Inc.

This report segments global ambulatory surgical centers market by specialty, services, location, ownership type, modality, and region.

By Specialty

  • Single Specialty Surgical Centers
    • Podiatry
    • Dental
    • Otolaryngology
    • Endoscopy
    • Gynecology
    • Ophthalmology
    • Orthopedic
    • Pain management
    • Plastic surgery
    • Other
  • Multi-Specialty Surgical Centers
    • Podiatry
    • Dental
    • Otolaryngology
    • Endoscopy
    • Gynecology
    • Ophthalmology
    • Orthopedic
    • Pain management
    • Plastic surgery
    • Other

By Services

  • Surgical services
  • Diagnostic services

By Location

  • Rural
  • Urban

By Ownership Type

  • Physician only
  • Corporate-physician
  • Hospital-physician
  • Corporate-hospital
  • Corporate only
  • Hospital only

By Modality

  • Hospital-based ambulatory surgical center
  • Freestanding ambulatory surgical center 

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

About Energias Market Research Pvt. Ltd. –

Energias Market Research launched with the objective to provide in-depth market analysis, business research solutions, and consultation that is tailored to our client’s specific needs based on our impeccable research methodology.

With a wide range of expertise from various industrial sectors and more than 50 industries that include energy, chemical and materials, information communication technology, semiconductor industries, healthcare and daily consumer goods, etc. We strive to provide our clients with a one-stop solution for all research and consulting needs.

Our comprehensive industry-specific knowledge enables us in creating high quality global research outputs. This wide-range capability differentiates us from our competitors.


Mr. Alan Andrews

Business Development Manager

For any queries email us:

To purchase report:

Call us: +1-716-239-4915



November 21, 2018 OrthoSpineNews

November 20, 2018

WILTON, Conn.–(BUSINESS WIRE)–Altus Capital Partners, Inc. (“Altus”), an investment firm focused on the North American manufacturing sector, today announced it has acquired ChoiceSpine, LP, a leading designer, manufacturer, and marketer of specialized spinal implants, instrumentation and biologics for the surgical treatment of complex spine disorders. Financial terms of the transaction were not disclosed.

Based in Knoxville, TN and founded in 2006, ChoiceSpine, LP and Knox Spine, LLC (collectively, the Company) collaborates with physicians to develop new products which incorporate current medical technology with customized patient solutions. ChoiceSpine products include minimally invasive, cervical, thoracolumbar, interbody, lateral, and biologics kits and implants that increase procedural efficiency and efficacy.

“We recognize the need in the medical technology space for proven spinal products that can enhance the quality of life for spinal patients,” said Altus Co-Founder and Senior Partner Gregory L. Greenberg. “ChoiceSpine, a global medical device corporation specializing in innovative solutions for both spinal fusion hardware and biologics, demonstrates a track record of proven innovation, strong sales growth, increased distribution and the necessity of their products in the marketplace.”

Management will continue to invest in the expansion of the business. Altus Capital Partner Heidi Goldstein added, “We look forward to working with Founders Rick Henson and Marty Altshuler, who continue to invest alongside us in the Company, in further capitalizing on the depth of their design and engineering capabilities, sales growth and momentum.”

“We have built a deep bench of talent that has led the company with an increased focus on product design and engineering which benefit so many patients experiencing spinal injuries,” said Rick Henson. “We look forward to working with Altus in further developing our offerings as well as expanding into new product verticals to continue to grow the company and provide patient solutions for the treatment of spinal disorders,” added Marty Altshuler.

This is Altus’ third acquisition in less than two years and its second in the medical technology space. The firm successfully completed the tender offer for all of the outstanding shares of common stock of MGC Diagnostics Corporation (“MGC”), a global medical technology company dedicated to cardiorespiratory health solutions in December 2017, and the acquisition of Max Environmental Technologies, Inc., an integrated environmental solutions company, in February, 2017.

About ChoiceSpine

ChoiceSpine is a privately-held spinal device company located in Knoxville, TN. The company prides itself on providing excellent products and exceptional service to meet the needs of their customers. ChoiceSpine offers a breadth of innovative and surgeon-focused systems that are designed to be safe, efficient, and easy-to-use. By working closely with physicians and maintaining a service-focused distribution, ChoiceSpine will continue to bring technically-superior spinal products to market.

About Altus Capital Partners

Altus Capital Partners is a private equity firm that makes control investments in middle market manufacturing businesses. We believe that our exclusive focus on manufacturing provides us with a unique understanding of the opportunities and challenges faced by companies in the sector. We utilize a patient, thoughtful investment approach and seek to partner with the management teams of our operating companies to achieve growth. With offices in Wilton, CT and Lincolnshire, IL, Altus Capital Partners has completed 18 platform investments and numerous add on acquisitions since 2003. For more information, please visit


Laura Brophy
Marketcom PR


November 20, 2018 OrthoSpineNews

CAESAREA, IsraelNov. 19, 2018 /PRNewswire/ — Mazor Robotics Ltd. (TASE: MZOR; NASDAQGM: MZOR), a pioneer and a leader in the field of robotic guidance systems, today announced that at a Special General Meeting of Shareholders held earlier today, Mazor Robotics shareholders approved the previously announced definitive merger agreement with wholly-owned subsidiaries of Medtronic plc (NYSE: MDT).

Approximately 53 percent of Mazor Robotics ordinary shares were represented in the meeting. Approximately 95 percent of the shares represented in the meeting which are neither held by a Medtronic affiliated party nor by a controlling shareholder of the Company or a shareholder with a personal interest in the merger proposal, were cast in favor of the merger.

Upon completion of the transaction, Mazor Robotics shareholders will receive $58.50 per American Depository Share, or $29.25 per ordinary share, in cash, for a total of approximately $1.64 billion. The transaction remains subject to certain closing conditions and is expected to close during Medtronic’s third fiscal quarter ending January 25, 2019.

About Mazor

Mazor Robotics (TASE: MZOR; NASDAQGM: MZOR) believes in healing through innovation by developing and introducing revolutionary technologies and products aimed at redefining the gold standard of quality care. Mazor Robotics Guidance System enables surgeons to conduct spine and brain procedures in an accurate and secure manner. For more information, please visit

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Any statements in this release about future expectations, plans or prospects for the Company, including without limitation, statements regarding the acquisition of Mazor, including the expected timing of the closing of the transaction, and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions are forward-looking statements. These statements are only predictions based on Mazor’s current expectations and projections about future events. There are important factors that could cause Mazor’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include, but are not limited to, the impact of general economic conditions, competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, and other factors indicated in Mazor’s filings with the Securities and Exchange Commission (SEC) including those discussed under the heading “Risk Factors” in Mazor’s annual report on Form 20-F filed with the SEC on April 30, 2018 and in subsequent filings with the SEC. For more details, refer to Mazor’s SEC filings. Mazor undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.

U.S. Contacts: EVC Group 
Michael Polyviou/Doug Sherk– Investors 
732-933-2754; 415-652-9100

SOURCE Mazor Robotics Ltd.


November 19, 2018 OrthoSpineNews

ANNAPOLIS JUNCTION, MD, Nov. 19, 2018 (GLOBE NEWSWIRE) — Colfax Corporation (NYSE: CFX), a leading diversified technology company, today announced it has entered into a definitive agreement to acquire DJO Global Inc. (“DJO”) from private equity funds managed by Blackstone for $3.15 billion in cash. DJO is a global leader in orthopedic solutions, providing orthopedic devices, software and services spanning the full continuum of patient care, from injury prevention to rehabilitation.

“The acquisition of DJO is a compelling next step in the strategic evolution of Colfax that creates a new growth platform in the high-margin orthopedic solutions market,” said Matt Trerotola, President and Chief Executive Officer of Colfax. “As a clear market leader in bracing and rehabilitation systems – with a track record of innovative new products, globally recognized brands, and a diverse product portfolio – DJO is well-positioned to benefit from secular trends driven by changing demographics and increased preventive healthcare. This transaction reflects our strategic intent to diversify our portfolio and end-market exposure, reduce cyclicality, and increase profitability. We see significant opportunities to apply our proven Colfax Business System across DJO to create a continuous improvement culture, further improve productivity and margins, and accelerate innovation and new product development.”

Mr. Trerotola continued, “We are committed to reducing leverage and restoring balance sheet flexibility near-term and will explore strategic options for our Air and Gas Handling business. Longer term, we see tremendous opportunities to build our new medical technology platform with additional investment. We are excited to welcome DJO’s strong management team and talented associates to the Colfax family.”

“Joining Colfax is a win for our customers, and all DJO stakeholders,” said Brady Shirley, DJO President and CEO. “Colfax has the financial strength, experience, and proven business system to support our operational performance and growth.  Importantly, they are committed to our mission to get and keep people moving, and we are confident that the Colfax team’s operating expertise across a broad array of businesses makes them the ideal partner to help us build on our momentum, drive new levels of innovation, and continue to deliver outstanding service to our customers.”

Upon closing of the transaction, DJO Global will operate as a new segment within Colfax and be led by Mr. Shirley, who will report directly to Mr. Trerotola.

With leadership positions in most product categories, DJO provides a broad range of orthopedic care solutions including bracing, reconstructive implants, rehabilitation devices, software and services. Known for its innovative products, DJO’s portfolio of iconic brands are trusted by patients, athletes, and healthcare professionals globally. Headquartered in Vista, California, DJO has approximately 5,000 employees across 18 locations around the world. DJO’s revenue was $1.2 billion and adjusted EBITDA was $269 million for the twelve-month period ending September 2018.

Financing & Transaction Details
The transaction, which is expected to close in the first quarter of 2019, is expected to deliver adjusted EPS accretion in the first full year after closing. In addition, Colfax expects to realize future tax benefits from DJO’s approximately $800 million of net operating loss carryforwards.

Colfax expects to finance the transaction with approximately $100 million of cash from its balance sheet, proceeds from credit facilities and a contemplated debt offering, and $500 to $700 million from a contemplated offering of equity or equity-linked securities. J.P. Morgan and Credit Suisse have committed to provide bridge financing for the transaction. Colfax expects to maintain its existing debt ratings and will prioritize deleveraging to reduce its net leverage ratio to the mid-3x range by the end of calendar 2019. In connection with its deleveraging plans, Colfax is evaluating strategic options for its Air and Gas Handling business. Colfax does not intend to undertake any material acquisitions or share repurchases until its leverage metrics return to targeted levels.

The acquisition is subject to customary closing conditions, including receipt of applicable regulatory approvals.

J.P Morgan is serving as financial advisor and Kirkland & Ellis is serving as legal advisor to Colfax.  Goldman, Sachs & Co. LLC, Credit Suisse, and Wells Fargo Securities, LLC are serving as financial advisors and Simpson Thacher & Bartlett LLP is serving as legal advisor to DJO.

Conference Call and Webcast
Colfax will host a conference call to discuss the transaction today at 8:30 a.m. Eastern. The call will be open to the public through 877-303-7908 (U.S. callers) or +1-678-373-0875 (international callers) and referencing the conference ID number 6068397 or through webcast via Colfax’s website at under the “Investors” section. Access to a supplemental slide presentation can also be found at the Colfax website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call.

About Colfax Corporation
Colfax Corporation is a leading diversified technology company that provides air & gas handling and fabrication technology products and services to customers around the world principally under the Howden and ESAB brands. Colfax believes that its brands are among the most highly recognized in each of the markets that it serves. The Company uses its Colfax Business System (CBS), a comprehensive set of tools, processes and values, to create superior value for customers, shareholders and associates. Colfax is traded on the NYSE under the ticker “CFX.” Additional information about Colfax is available at

About DJO Global
DJO Global is a leading global provider of medical technologies designed to get and keep people moving. The Company’s products address the continuum of patient care from injury prevention to rehabilitation, enabling people to regain or maintain their natural motion. Its products are used by orthopedic surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers and other healthcare professionals. In addition, many of the Company’s medical devices and related accessories are used by athletes and patients for injury prevention and at-home physical therapy treatment. The Company’s product lines include rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management and physical therapy products. The Company’s surgical division offers a comprehensive suite of reconstructive joint products for the hip, knee and shoulder. DJO Global’s products are marketed under a portfolio of brands including Aircast®, Chattanooga, CMF™, Compex®, DonJoy®, ProCare®, DJO® Surgical, Dr. Comfort® and Exos™.
Additional information about DJO Global is available at

This press release contains forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Colfax’s plans, objectives, expectations and intentions and other statements that are not historical or current fact. Forward-looking statements are based on Colfax’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Colfax’s results to differ materially from current expectations include, but are not limited to risks and uncertainties regarding Colfax and DJO’s respective businesses and the proposed acquisition, and actual results may differ materially. These risks and uncertainties include, but are not limited to, (i) the ability of the parties to successfully complete the proposed acquisition on anticipated terms and timing, including obtaining required regulatory approvals and other conditions to the completion of the acquisition, (ii)  access to available financing on a timely basis and reasonable terms, (iii) the effects of the transaction on Colfax and DJO operations, including on the combined company’s future financial condition and performance, operating results, strategy and plans, including anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, losses, future prospects, business and management strategies for the management, expansion and growth of the new combined company’s operations, and (iv) other factors detailed in Colfax’s and DJO’s respective reports filed with the U.S. Securities and Exchange Commission on Form 10-K and Form 10-Q.  In addition, these statements are based on a number of assumptions that are subject to change. This press release speaks only as of the date hereof. Colfax disclaims any duty to update the information herein.

The term “Colfax” in reference to the activities described in this press release may mean one or more of Colfax’s global operating subsidiaries and/or their internal business divisions and does not necessarily indicate activities engaged in by Colfax Corporation.

Non-GAAP Financial Measures and Other Adjustments  
Colfax has provided in this press release financial measures for DJO Global that have not been prepared in accordance with GAAP, including Adjusted EBITDA and Leverageable Adjusted EBITDA.  DJO Global provided Colfax with this information, which was derived from DJO Global’s historical unaudited financial statements for the twelve months ended September 29, 2018 and has not been audited or reviewed by Colfax’s or DJO Global’s independent public accountants.  DJO Global defines Adjusted EBITDA as net income (loss) attributable to DJO Global plus interest expense, net, income tax provision (benefit), and depreciation and amortization, further adjusted for certain non-cash items, non-recurring items and other adjustment items as permitted in calculating covenant compliance and other ratios under the agreements governing the outstanding debt of DJO Global’s subsidiary DJO Finance, LLC (DJO Finance).  DJO Global defines Leverageable Adjusted EBITDA as Adjusted EBITDA, as further adjusted to reflect certain additional non-cash items, non-recurring items and other adjustment items permitted in calculating covenant compliance and other ratios under the agreements governing the outstanding debt of DJO Finance. Adjusted EBITDA and Leverageable Adjusted EBITDA should not be considered as an alternative to net income (loss) attributable to DJO Global or other performance measures presented in accordance with GAAP, or as an alternative to cash flow from operations as a measure of liquidity.

Colfax believes this presentation of DJO Global’s Adjusted EBITDA and Leverageable Adjusted EBITDA is useful and helps management, investors and rating agencies enhance their understanding of the impact of the DJO Global acquisition on Colfax’s financial performance.  However, Adjusted EBITDA and Leverageable Adjusted EBITDA do not have a standardized meaning, and different companies may use different Adjusted EBITDA definitions.  Therefore, DJO Global’s definition of Adjusted EBITDA and Leverageable Adjusted EBITDA may not be comparable to the definitions used by other companies.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of Adjusted EBITDA and Leverageable Adjusted EBITDA to the most directly comparable GAAP financial measure. A reconciliation of Adjusted EBITDA and Leverageable Adjusted EBITDA to GAAP net income has been provided below.

DJO Global, Inc.
Adjusted EBITDA Reconciliation of GAAP
Dollars in thousands

Ended September 29, 2018
Adjusted EBITDA
Net income attributable to DJO Global $ 397
Discontinued operations (567 )
Interest expense, net 181,091
Income tax provision (benefit) (55,196 )
Depreciation and amortization 107,646
Loss on disposal of assets, net 295
Restructuring and reorganization (1) 41,121
Acquisition integration 2,096
Blackstone monitoring fee 975
Financial reporting alignment (9,071 )
Adjusted EBITDA $ 268,787
Future cost savings 20,533
Stock compensation expense 4,522
Leverageable Adjusted EBITDA $ 293,842

(1) Consists of costs related to the company’s business transformation projects to improve the company’s operational profitability and liquidity.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended or via an exemption from the requirements of the Securities Act.

Kevin Johnson, Vice President                                   
Colfax Corporation                                                      

Jim Barron or Jenny Gore
Sard Verbinnen & Co.


November 19, 2018 OrthoSpineNews

November 14, 2018 / By Jacqueline LaPointe

Value-based reimbursement models are moving the needle on quality and cost, a new analysis from Humana shows.

In 2017, medical costs for patients attributed to primary care practices (PCPs) in Humana’s value-based reimbursement models for Medicare Advantage (MA) were 15.6 percent lower compared to Medicare fee-for-service, the insurer reported.

Internally, medical costs were also one percent lower for patients seeing PCPs in value-based payment models compared to patients treated by PCPs in Humana’s Medicare Advantage fee-for-service (FFS) setting.

“Humana MA value-based physicians had better results than their peers in FFS,” Kathryn Lueken, MD, MMM, Humana’s Corporate Medical Director of Medical Market Clinical Integration, wrote in the report. “The goal of taking costs out of the system and creating more value for the care received is showing results. Thus, value-based care is achieving the goal of creating higher quality medical care for lower cost.”

The transition to value-based care and payment has been a long and bumpy road for the healthcare industry.

READ MORE: Best Practices for Value-Based Purchasing Implementation

The Affordable Care Act really pushed the value-based care movement, but since then only about one-third of healthcare payments are tied to an alternative payment model with some degree of shared savings or risk, the Health Care Payment Learning & Action Network (LAN) recently reported.

Recent research also questions if value-based reimbursement can truly lower costs while maintaining or improving care quality. For example, a 2018 Healthcare Financial Management Association (HMFA) study of commercial payer and Medicare data from 2007 to 2015 found that the efficacy of alternative payment models reducing costs and improving care quality has yet to be proven.

However, value-based reimbursement at Humana is working to improve not only costs, but also utilization and quality, the insurer reported on Tuesday.

Patients in value-based reimbursement agreements were admitted to the hospital inpatient department 23.4 percent less than patients in traditional Medicare in 2017. And the patients went to the emergency room 15.6 percent less.

Even patients attributed to PCPs in bonus-only arrangements, which had limited upside shared savings, had fewer hospital admissions and emergency room visits. Hospital inpatient admissions and emergency room visits were 19.1 percent and 10.1 percent lower, respectively.