The News

SpineVision® raises $16+ million and spins out its New Technologies Uni to form FlexSpine in Singapore, which will focus on developing motion preservation solutions for spinal surgery

06/12/2005

“SpineVision will distribute the treasure trove of new products being developed by FlexSpine and will oversee FlexSpine’s initial product launches to thought-leaders.”
Gérard Vanacker, Founder and CEO, SpineVision®

ATLANTA and PARIS, Dec. 6, 2005—SpineVision® announced today that it has raised more than $16 million. The Company will use approximately 80 percent of these funds to spin off its New Technologies Business Unit, creating a new wholly owned subsidiary—FlexSpine—to be headquartered in Singapore. In addition to working capital, SpineVision will contribute product expertise and human resources to FlexSpine. Products to be further developed through FlexSpine include an innovative hybrid dynamic stabilization system and interspinous spacer (both of which are expected to be commercialized in Europe next year and, soon thereafter, in the U.S.), as well as prosthetic discs.

Investors were led by Bio*One Capital, the biomedical sciences investment arm of the Singapore Economic Development Board. Other institutional investors included Sofinnova Partners, HBM Ventures, Innoven Private Equity, and HealthCap.

“We chose Singapore to be FlexSpine’s headquarters because of its pro-business environment, its commitment to the biomedical sciences industry, a ready pool of engineers, and an array of business incentives that ultimately lowers the cost of business,” said Gérard Vanacker, CEO and founder of SpineVision. “FlexSpine will have ready access to preclinical and clinical research resources that are highly regarded by international regulatory authorities. Additionally, Singapore is ideally located for creating partnerships with international companies and has a well-organized, high-tech infrastructure with significant expertise,” Vanacker added. “Furthermore, it is expected that FlexSpine will serve as the principal distributor for SpineVision’s fusion products in Asia Pacific, a high-growth market in which SpineVision’s sales efforts have not previously been emphasized.”

“We are delighted to have SpineVision in our portfolio and to host its subsidiary, FlexSpine, in Singapore. SpineVision has made tremendous progress over the last few years, successfully introducing no less than seven products in the US and EU markets,” said Swee Yeok CHU, CEO of Bio*One Capital. “We expect SpineVision’s rich vein of innovation to be replicated in FlexSpine, which will be fully dedicated to the development of implants and instruments for non-fusion spinal surgery, a field that will see high growth over the next decade. Locating the operations in Singapore will allow FlexSpine to leverage on the well-established expertise in materials, precision engineering, and manufacturing in Singapore. This investment exemplifies the role that Bio*One Capital plays in helping innovative, growth companies to achieve their corporate objectives, especially in expanding their Asia Pacific businesses.”

The U.S. market for non-fusion spinal devices, the focus of FlexSpine, was approximately $75 million in 2004 and is expected to grow to nearly $11 billion by 2010 (source—“Beyond Total Disc: The Future of Spine Surgery,” May 2004, Viscogliosi Bros., LLC).

About Bio*One Capital Pte Ltd
Bio*One Capital is a leading, dedicated biomedical sciences investment management company based in Singapore with a worldwide presence. With funds of over $700 million, investments are focused on promising global biomedical companies where Bio*One Capital can play a value-adding role in bridging and supporting companies’ growth strategies in Asia through their operations in Singapore. Bio*One Capital offers a strong combination of financial, business, scientific and investment know-how to enhance the value of companies— from intellectual property generating research, to clinical and product development, manufacturing and commercial activities. Through its extensive networks with global pharmaceutical, biotechnology and medical technology companies, as well as venture capital firms, Bio*One Capital proactively facilitates partnering and collaborative opportunities to help its portfolio companies grow into sustainable and successful ventures. For more information, please visit www.bio1capital.com.

About SpineVision®
SpineVision® is a privately owned, integrated spinal technology company focused on design, development and marketing of implants and instrumentation for spinal surgery. The Company’s international headquarters are in Paris, and the Company’s U.S. headquarters are located in Atlanta.