Completes Transition to Exclusive Sales Force Ahead of Stated Guidance
SAN DIEGO, June 5 /PRNewswire-FirstCall/ -- NuVasive, Inc. (Nasdaq: NUVA), a medical device company focused on developing products for minimally disruptive surgical treatments for the spine, announced today that 90 percent of the Company's sales force is now selling NuVasive products exclusively completing the transition to sales force exclusivity. The Company achieved this milestone ahead of its stated guidance of over 90 percent sales force exclusivity by the end of the second quarter of 2006.
This exclusive sales force is comprised of area business managers (ABMs) and exclusive distributors. ABMs are direct NuVasive shareowners (employees) who are responsible for a defined geography and who manage additional sales personnel. Exclusive distributors are independent contractors who also cover a defined geography and exclusively represent NuVasive with respect to the sale of its spine surgery products. This exclusive sales force totals 175.
Alexis V. Lukianov, Chairman and Chief Executive Officer of NuVasive, said, "We are extremely pleased to complete our transition to sales force exclusivity ahead of schedule. Our senior management team has spent considerable time and effort on this important strategic initiative, which we believe will translate into robust long-term growth in both revenues and adoption of our unique products and technologies. We expect the full benefits of this initiative will be realized in 2007, as the sales force continues to move up the learning curve on our products and starts to realize its full potential. This elite sales organization continues to make progress on our vertical product integration strategy, deepening NuVasive product penetration and gaining increased share of spine surgeon business."
Separately, the Company also announced that it recently entered into an agreement to acquire a 100,000 square-foot warehouse and distribution facility in Memphis, Tennessee for $3 million. Subject to the satisfaction of certain closing conditions, the Company intends to close on this facility in the near term. The facility, located conveniently near Federal Express's distribution hub, will provide NuVasive additional working hours each day during which it can process and ship products and instrument sets to spine surgeons, leading to improved turnaround times and greater distribution efficiency to support the efforts of its sales force to penetrate the market.
NuVasive is a medical device company focused on the design, development and marketing of products for the surgical treatment of spine disorders. The Company's product portfolio is focused on applications in the over $2.9 billion U.S. spine fusion market. The Company's current principal product offering includes a minimally disruptive surgical platform called Maximum Access Surgery, or MAS(TM), as well as classic fusion implants.
The MAS platform offers advantages for both patients and surgeons such as reduced surgery and hospitalization time and faster recovery. MAS combines three categories of current product offerings-NeuroVision(R), a proprietary software-driven nerve avoidance system; MaXcess(R), a unique split-blade design retraction system; and specialized implants, like SpheRx(R) and CoRoent(R)-that collectively minimize soft tissue disruption during spine surgery while allowing maximum visualization and surgical reproducibility. NuVasive's classic fusion portfolio is comprised predominantly of proprietary saline packaged bone allografts and internal fixation products. NuVasive also has a robust R&D pipeline emphasizing both MAS and motion preservation products such as Total Disc Replacement (TDR) and the NeoDisc(TM) investigational nucleus-like replacement device.
NuVasive cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause NuVasive's results to differ materially from historical results or those expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to: the uncertain process of seeking regulatory approval or clearance for NuVasive's products or devices, including risks that such process could be significantly delayed; the possibility that the FDA may require significant changes to NuVasive's products or clinical studies; the risk that products may not perform as intended and may therefore not achieve commercial success; the risk that competitors may develop superior products or may have a greater market position enabling more successful commercialization; the risk that additional clinical data may call into question the benefits of NuVasive's products to patients and surgeons; and other risks and uncertainties more fully described in NuVasive's press releases and periodic filings with the Securities and Exchange Commission. NuVasive's public filings with the Securities and Exchange Commission are available at www.sec.gov. NuVasive assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.
Contact: Investors: Kevin C. O'Boyle Stephanie Carrington /Nick Laudico EVP & Chief Financial Officer The Ruth Group NuVasive, Inc. 646-536-7017/7030 858-909-1800 email@example.com firstname.lastname@example.org email@example.com