Alphatec to renegotiate Scient’X deal
This article was originally published in The Gray Sheet
Executive Summary
Recent Alphatec stock price slump will require the spinal device maker to renegotiate its planned purchase of artificial disc developer Scient'X, the company says Nov. 7. First announced Sept. 27 and valued at about $180 mil., the acquisition is based primarily on a stock-swap, with a small cash component (1"The Gray Sheet" Oct. 2, 2006, p. 8). The stock decline is due in part to a July sales force reorganization that resulted in lower than expected third quarter sales. An Oct. 6 Q3 results preview was followed by the departure of CFO Stephen Dixon Oct. 19. On Nov. 10, Alphatec stock closed at $2.98, down 54% from its Sept. 27 close of $6.50...