1. prnewswire.com
Abbott Acquires Spine Next, S.A., a
Manufacturer of Non-Fusion Spinal
Implant Devices
Abbott Laboratories
ABBOTT PARK, Ill., Oct. 25 /PRNewswire-FirstCall/ -- Abbott (NYSE:
ABT) today announced it has acquired Spine Next, S.A., of Bordeaux,
France. Spine Next is a privately owned manufacturer of orthopedic spinal
implant devices including a dynamic stabilization device that treats early
degenerative disc disease without fusion of the vertebrae, helping
patients preserve motion. "This acquisition enhances our spinal
product line with an exciting non- fusion technology and expands the
established global distribution network for our existing spinal products
business," said Jeffrey Binder, president of Spinal Concepts, a division
of Abbott Laboratories. "We are pleased to welcome the experienced Spine
Next team and look forward to working with them to deliver exceptional
next generation solutions to surgeons and their patients around the
world." Richard A. Gonzalez, president and chief operating officer,
Medical Products Group at Abbott said, "This move is consistent with our
overall strategy of focusing on high-growth, financially-attractive
technology-driven areas where significant unmet medical need exists."
Under terms of the agreement, Abbott acquired all of the equity of Spine
Next for approximately $60 million in cash plus additional milestone
payments upon achievement of future targets. One-time charges are
expected in the fourth quarter of 2004, primarily for in-process research
and development, as included in Abbott's guidance for one-time charges in
its news release on third quarter earnings, issued October 14, 2004. This
transaction will not have an impact on Abbott's on-going 2004 earnings-
per-share. Among Spine Next's products is the Wallis system, a novel
spinal implant for treating the root cause of degenerative disc disease
without fusing the spine. Dynamic stabilization devices treat
degenerative disc disease by providing additional support to the spine
without fusion of the vertebrae. They have the potential to be less
invasive than artificial discs, and provide surgeons an option for
treating degenerative disc disease earlier in its progression. The
Wallis system is approved for sale throughout Europe and other parts of
the world. In early 2005, Abbott expects to begin a clinical trial to
collect data to support U.S. regulatory approval of the Wallis system.
"We're delighted to become part of Abbott," said Erick Cloix, president,
Spine Next. "This move will allow us to take advantage of Abbott's
sophisticated research and development capabilities, which in turn will
help us to grow the business more quickly and bring innovative solutions
to patients everywhere even faster." In June 2003, Abbott acquired
Spinal Concepts, a manufacturer of spinal fixation products used during
spinal fusion surgery. Industry reports show that approximately 400,000
back surgeries took place last year in the U.S. alone, and more than 60
percent of those surgeries involved fixation systems or devices, or a
combination. Medical experts predict that the next evolution in the
treatment of degenerative spinal disease will involve devices that give
strength and stability to the spine without the need for fusion.
About Spine Next Spine Next, S.A., was formed in 1999 and is located
in Bordeaux, France. It markets a variety of traditional products for
spinal fusion surgeries, as well as the Wallis system, a novel implant for
dynamic stabilization of the spine. The company has approximately 40
employees. Most of the company's sales are outside of the U.S. The
company has been backed since inception by 3i, a world leader in venture

2. capital and private equity, and also by other prestigious firms such as
Auriga Partners and Edmond de Rothschild Investment Partners. About
Abbott Abbott is a global, broad-based health care company devoted to
the discovery, development, manufacture and marketing of pharmaceuticals
and medical products, including nutritionals, devices and diagnostics.
The company employs more than 55,000 people and markets its products in
more than 130 countries. Abbott's news releases and other information
are available on the company's Web site at http://www.abbott.com .
Private Securities Litigation Reform Act of 1995 -- A Caution Concerning
Forward-Looking Statements Some statements in this news release may
be forward-looking statements for purposes of the Private Securities
Litigation Reform Act of 1995. Abbott cautions that these forward-looking
statements are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the forward-looking
statements. Economic, competitive, governmental, technological and other
factors that may affect Abbott's operations are discussed in Exhibit 99.1
of our Securities and Exchange Commission Form 10-Q for the period ended
June 30, 2004, and are incorporated by reference. Abbott undertakes no
obligation to release publicly any revisions to forward-looking statements
as the result of subsequent events or developments.
SOURCE Abbott Laboratories