CHICAGO, Nov. 12, 2014 /PRNewswire/ -- Valorem Surgical, a U.S. manufacturer of cranial, interventional, and spinal fusion instrumentation, today announced that the company has entered into an agreement to acquire an equity interest in NHS Bio Co., Ltd., a South Korean contract OEM manufacturer, and the launch of a new joint venture company to handle the sales, marketing and distribution initiatives for Asia Pacific, Valorem Surgical AP.
Under terms of the joint venture agreement, the new company, Valorem Surgical AP (Asia Pacific), will be formed to operate NHS Bio's branded spine businesses in South Korea, Japan, India, China, Southeast Asia, and other East Asian markets. The new venture will build on Valorem Surgical's sales and marketing expertise, along with NHS Bio's innovative spinal MIS technologies, and both companies' quality products in the region and beyond.
Valorem Surgical is hosting a Technology Suite at NASS on 11/12-11/13 at the Metropolitan Suite at the St. Regis Hotel, 125 3rd St, San Francisco, CA 94103.
"We are excited to have Valorem Surgical as our partner and are proud to welcome them to Asia. We've taken our time to find a great partner that understands Asia and matches our drive, passion and aspiration," said Mr. KJ Jeon, CEO, NHS Bio Co., Ltd.
Mr. Joseph Jin, president and CEO, Valorem Surgical LLC, said, "By partnering with NHS Bio, Valorem Surgical is taking an important step in developing our global position with an initial focus on the emerging markets within Asia Pacific." Mr. Jin added, "This is particularly exciting, given NHS Bio's manufacturing capabilities, research and development expertise, and the strength of its distribution network in the marketplace. We believe this partnership enables both companies to offer hospitals, surgeons, and patients a portfolio of world-class products at an unparalleled value."
Valorem Surgical and NHS Bio have maintained a relationship under an OEM agreement for instrumentation sets since 2012. With the equity interest in the manufacturing facility, Valorem Surgical will initiate its presence in a key emerging market with a product portfolio and pipeline of new products targeted at the large and fast-growing aging patient population and value segment platform of the Asian Pacific market. More importantly, Valorem is positioned to compete at a high level globally by controlling manufacturing costs of commoditized implant systems with quickly eroding reimbursement costs both in the U.S. and OUS.
"We look forward to working with the talented management team and employees to accelerate Valorem Surgical AP's growth, and strengthen our position as a highly competitive implant manufacturer sensitive to the cost containment models of healthcare systems worldwide," added Mr. Jin. "We worked hard to make this deal happen because we understand the tremendous value that Valorem Surgical AP can bring to its customers and the marketplace as a private company. The combined scale will create significant competitive advantages in the increasingly dynamic orthopaedic industry and provide a platform to fully realize future growth opportunities in Asia Pacific and globally."
Under the terms of the agreement, Valorem Surgical will acquire an equity position in NHS Bio for an undisclosed cash amount, and its spinal portfolio. The details surrounding the creation of the joint venture company for Asia Pacific were not yet released at press time. The transaction, which is expected to close in Q1, 2015, is subject to approval by NHS Bio stockholders, regulatory approvals, and other customary closing conditions. There are no financing conditions associated with the proposed agreement.
About NHS Bio
NHS Bio Co., Ltd, newly incorporated in April, 2014, is a South Korean-based manufacturer of orthopedic spinal instrumentation that was, until recently, part of the medical device division of Winnova Co., Ltd. affiliated with Wooridul Spine Hospital.
About Valorem Surgical
Valorem Surgical LLC, is an early stage medical device company with a platform on surgically treating spinal pathologies through a minimally invasive (MIS) approach. Based in Chicago, IL, Valorem designs, develops, manufactures, commercializes and distributes instrumentation and implants to orthopedic and neurosurgical care providers, hospital systems, ambulatory surgery centers and device distributors.
SOURCE Valorem Surgical