Alphatec Denounces “Baseless” NuVasive Complaint
October 11 2017 - 9:00AM
Alphatec Holdings, Inc. (Nasdaq:ATEC), a provider of innovative
spine surgery solutions with a mission to improve patient lives
through the relentless pursuit of superior outcomes, released a
statement in response to a recent complaint filed by NuVasive, Inc.
(Nasdaq:NUVA) against Patrick S. Miles, Alphatec’s recently
appointed Executive Chairman.
On October 10, NuVasive, without prior inquiry
or notice, filed a baseless lawsuit against Mr. Miles. NuVasive
then issued a press release to broadcast the complaint, not to
“protect corporate assets” as stated, but in an attempt to inflict
maximum damage to the public reputations of both Mr. Miles and
Alphatec. The complaint is fictional, and includes disclosures by
NuVasive that breach its contractual confidentiality obligations
owed to Alphatec. It was filed by a law firm in violation of
its own ethical obligations, as the firm is currently actively
representing Alphatec in related matters.
“I was fortunate to be a part of NuVasive’s
growth from zero dollars in sales to close to a billion dollars in
revenue,” said Mr. Miles. “I am exceptionally proud of my
contribution, and I have lifelong friends who remain affiliated
with the organization. I did not leave NuVasive to damage the
company; in fact, I remain a significant shareholder. I chose
to pursue a new opportunity at Alphatec because I want to align my
talents and influence with a Company that is focused on serving
spine surgeons and their patients. The allegations made by
NuVasive against me are clearly false, and typical of a management
team reacting to mass departures of key, spine-experienced
executives. I intend, ultimately, to clear my name. In the
meantime, I will not be distracted by baseless claims, and will
drive Alphatec’s pursuit of improved surgical outcomes.”
Terry Rich, Alphatec’s Chief Executive Officer,
continued, “I have known Pat since I joined him in building
NuVasive twelve years ago. He is well known to the spine industry
worldwide and is highly respected for his integrity. The
complaint against him is full of false claims, and is nothing more
than a PR stunt by NuVasive. It has been orchestrated to
detract from a decaying, toxic culture that has contributed to the
resignations of three C-Suite officers since July 2017, and caused
dozens of NuVasive employees and countless surgeon customers to
reach out to Alphatec, seeking more attractive opportunities. The
current issues at NuVasive have nothing to do with Pat. We look
forward to continuing to move our business forward under his
leadership.”
Mr. Miles plans to file a timely response to the
complaint. Alphatec will vigorously support him in this matter.
About Alphatec Holdings,
Inc.
Alphatec Holdings, Inc., through its wholly
owned subsidiary Alphatec Spine, Inc., is a medical device company
that 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's mission is to improve lives by providing
innovative spine surgery solutions through the relentless pursuit
of superior outcomes. The Company markets its products in the U.S.
via independent sales agents and a direct sales force.
Additional information can be found at
www.alphatecspine.com.
Forward Looking Statements
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainty. Such
statements are based on management's current expectations and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. The Company cautions investors that
there can be no assurance that actual results or business
conditions will not differ materially from those projected or
suggested in such forward-looking statements as a result of various
factors. Forward-looking statements include the references to the
Company’s strategy in significantly repositioning the Alphatec
brand and turning the Company into a growth organization. The
important factors that could cause actual operating results to
differ significantly from those expressed or implied by such
forward-looking statements include, but are not limited to:
the uncertainty of success in developing new products or products
currently in the Company’s pipeline; the uncertainties in the
Company’s ability to execute upon its strategic operating plan; the
uncertainties regarding the ability to successfully license or
acquire new products, and the commercial success of such products;
failure to achieve acceptance of the Company’s products by the
surgeon community, including Battalion and Arsenal Deformity;
failure to obtain FDA or other regulatory clearance or approval for
new products, or unexpected or prolonged delays in the process;
continuation of favorable third party reimbursement for procedures
performed using the Company’s products; unanticipated expenses or
liabilities or other adverse events affecting cash flow or the
Company’s ability to successfully control its costs or achieve
profitability; uncertainty of additional funding; the Company’s
ability to compete with other competing products and with emerging
new technologies; product liability exposure; an unsuccessful
outcome in any litigation in which the Company is a defendant;
patent infringement claims; claims related to the Company’s
intellectual property and the Company’s ability to meet its
financial obligations under its credit agreements and the Orthotec
settlement agreement. The words “believe,” “will,” “should,”
“expect,” “intend,” “estimate” and “anticipate,” variations of such
words and similar expressions identify forward-looking statements,
but their absence does not mean that a statement is not a
forward-looking statement. A further list and description of
these and other factors, risks and uncertainties can be found in
the Company's most recent annual report, and any subsequent
quarterly and current reports, filed with the Securities and
Exchange Commission. Alphatec disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise, unless
required by law.
Investor/Media Contact:
Zack KubowThe Ruth Group(646)
536-7000alphatec@theruthgroup.com
Company Contact:
Jeff BlackExecutive Vice President and Chief
Financial OfficerAlphatec Holdings, Inc. (760)
431-9286Investorrelations@alphatecspine.com
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