CARLSBAD, Calif., May 09, 2019 (GLOBE NEWSWIRE) — Alphatec Holdings, Inc. (“ATEC” or the “Company”) (Nasdaq: ATEC), a provider of innovative spine surgery solutions dedicated to revolutionizing the approach to spine surgery, today announced financial results for the quarter ended March 31, 2019, and recent corporate highlights.
First Quarter 2019 Financial Highlights
- Total net revenue of $24.6 million; U.S. product revenue of $23.0 million, up approximately 20% compared to the first quarter of 2018;
- U.S. commercial gross margin of 71.4%;
- Cash and cash equivalents of $16.4 million at March 31, 2019; and
- Additional capital commitment of up to $30 million from Squadron Capital.
Year-to-Date Commercial, Product, and Organizational Highlights
- Enhanced clinical distinction of portfolio via 3 new commercial releases: the IdentiTi™ ACDF system, the IdentiTi™ PLIF system, and AlphaGRAFT® DBM Fiber;
- Received FDA clearance for SafeOp Advanced Automated Neuromonitoring System and affirmed performance through collaboration with key surgeon partners;
- Drove contribution from new products to 22% of Q1 2019 U.S. revenue on strong acceptance of alpha releases;
- Expanded contribution from strategic distribution network to 84% of U.S. revenue in Q1 2019 compared to 72% in Q1 2018;
- Increased revenue per distributor by more than 30% and increased revenue per case by 13% in Q1 2019 compared to Q1 2018; and
- Strengthened distribution network through promotion of David Sponsel to Head of Sales.
“Financial results in the first quarter have begun to more fully reflect the grit and tenacity of the new ATEC,” said Pat Miles, Chairman and Chief Executive Officer. “On the success of last year’s alpha launches, first quarter U.S. revenue growth accelerated to 20% year-over-year, our second consecutive quarter of double-digit growth. As we continue to commercially launch the twelve new products slated for 2019 and leverage the high-caliber sales leadership team and professional distribution network we are building, we expect surgeon adoption to accelerate. While we still have a great deal of work to do and are early in the transformation, we are incredibly excited to unleash the full effect of the ATEC organic innovation machine.”