OLYMPUS CORPORATION MAKES STRATEGIC INVESTMENT IN SMALL BONE INNOVATIONS, INC.
Signs Distribution Agreements for Japan and China
NEW YORK, NY: May 13, 2010 –Small Bone Innovations, Inc. (SBi), a leading privately-held orthopedic company focused exclusively on technologies and treatments for the small bones & joints, announced that Olympus Corporation (Olympus), Tokyo, Japan has made a strategic investment of $12 million in SBi Series E Preferred Stock. The parties agreed that the investment grants no special privileges and will not influence SBi's operating independence.
In related but separate transactions, SBi Asia Pacific Sdn. Bhd. (SBi APAC) has signed distribution agreements with Olympus Terumo Biomaterials Corporation (66.6 percent owned by Olympus and 33.4 percent owned by Terumo Corporation) whereby they will exclusively distribute SBi products in Japan and China.
Tsuyoshi Kikukawa, president of Olympus, said: "Olympus recognizes the need to satisfy a universal desire amongst our aging populations to maintain an active lifestyle. Our investment in SBi will help small bone and joint treatments continue to be the fastest growing sector in the orthopedics market. It will also complement our biomaterials programs for maintaining musculoskeletal health."
Dr.h.c. Anthony G. Viscogliosi, Executive Chairman & CEO of SBi, added: "This important investment will accelerate the worldwide rollout of SBi's S.T.A.R.® total ankle replacement system by providing capital for inventory and expanding surgeon education and training. It will also support new and expanded product offerings for both the upper and lower limb anatomies and related clinical studies. This investment further enhances the implementation of our global business strategy."
Separately, SBi APAC, a joint venture with Khazanah Nasional Berhad and Malaysian Technology Development Corporation Sdn. Bhd., signed agreements with Olympus Terumo Biomaterials Corporation for the exclusive distribution of SBi products in Japan and China. Olympus Terumo Biomaterials Corporation conducts research and development, manufactures, and sells in the biomaterials and regenerative medicine fields. The company is a leading manufacturer of bone void fillers and tissue engineered products for deep wound healing.
Hitoshi Mizuno, President of Olympus Terumo Biomaterials Corporation, said: "These agreements will leverage our leading position in biomaterials to successfully introduce SBi's clinically proven orthopedic implants to surgeons in Japan and China."
Regarding the distribution rights, Mr. Viscogliosi added: "These exclusive distribution agreements with Olympus Terumo Biomaterials Corporation will lead to an accelerated emergence of the small bone & joint market in Japan and China. Our relationship with Olympus Terumo Biomaterials Corporation and Olympus Corporation, its majority owner, will form the foundation of a long-lasting, mutually beneficial partnership in Japan and China. According to Pacific Bridge Medical, the Japanese medical device market is the largest market in the Asia Pacific region and totals more than $25 billion."
SBi has been attracting considerable attention in recent months in both the financial and the orthopedics sector. The company was ranked #24 on the list of the Top 50 U.S. VC-backed companies in the Wall Street Journal article "Sizing Up Promising Young Firms" on March 9, 2010.
The company in mid 2009 closed on $144 million in Series D and Series C funding from a host of investors including, Goldman, Sachs & Co., Khazanah Nasional Berhad, (the investment firm of the Government of Malaysia), Malaysian Technology Development Corporation (MTDC), an integrated Malaysian-based venture capital company, The Family Office of Bahrain, Viscogliosi Brothers, LLC, Trevi Health Ventures, NGN Capital, 3i Group, and TGap Ventures, among others.
Small Bone Innovations, Inc. (SBi)
was founded in 2004 by Viscogliosi Brothers, LLC, (VB), a New York-based merchant banking firm that specializes in the musculoskeletal/orthopedics sector. VB created SBi as the first company to focus purely on small bones & joints. By integrating established companies and professionals in the field, SBi offers a broad, clinically proven portfolio of products and technologies to treat trauma and diseases in small bones & joints. Today, SBi has facilities in New York, NY, Morrisville, PA, Bourg-en-Bresse, France, Donaueschingen, Germany, and Kuala Lumpur, Malaysia.
For more information on SBi, please visit : www.totalsmallbone.com
For more information on Olympus Corporation, please visit: : http://www.olympus-global.com/en/
For more information on Olympus Terumo Biomaterials Corporation, please visit: : http://www.olympus-global.com/en/
Forward-looking statements (SBi)
This news release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting SBi's business including increased competition; the ability of SBi to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks.