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Quarterly Review

1Q14 Revenue: Alphatec Spine

$49.2MM, -1% (U.S. $32.1MM, -3%; Ex-U.S. $17.1MM, +3%: Japan +20%)

  • Overall growth impacted by exit from France, overly high procedure cancellations due to poor U.S. weather
  • U.S. hospital non-biologic implant volume +15%, driven by Novel, Solus, Zodiac Deformity, offset by price pressure (mid-single-digits on core hospital implants)
  • Less-invasive products +10%, supported by Illico MIS in Japan
  • Received FDA 510(k) clearance for Arsenal spinal fixation for complex degenerative conditions, full launch in 2H14-1H15
  • Launched CoreX for harvesting autologous bone in U.S., DiscoCerv cervical disc in China, Epicage lumbar interbody system in Brazil
  • Noted more reimbursement pushback in lumbar vs. cervical
  • Eliminated U.S. Commercial Operations title