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Quarterly Review

2Q13 Revenue: Alphatec Spine

$51.0MM, +9% (U.S. $32.5MM, -1%; ex-U.S. $18.5MM, +30%; Japan +30% constant currency, +5% reported)

  • Japan remains largest ex-U.S. business region, driven by ILLICO MIS products, new Novel interbody devices
  • Metal implant unit sales to U.S. hospitals +10% in light of growing physician adoption, including Phygen members (network of 100+ spine surgeons)
  • U.S. growth impacted by voluntary withdrawal of PureGen, mid-single-digit price pressures, planned reduction in business with certain physician-owned distributors/PODs (now down to two, both reviewed for compliance with laws)
  • PODs were never a significant contributor; currently <5% of U.S. and <3% of global business (and shrinking)
  • Released ILLICO Multi-Level Instrumentation for longer constructs
  • Expanding variety of sizes, delivery options for NEXoss (nanostructured HA granules + open collagen structure)
  • 2H13 launches include Solus and Pegasus interbody device for anterior lumbar fusion (Solus now in beta)
  • Slated to receive key product registration approvals in 2H13 in Brazil, China, certain Asia Pacific regions
  • Passed FDA site inspection with no observations issued