Dj Orthopedics Acquires Bone Growth Stimulation Business

, Inc., a designer, manufacturer, and marketer of products and services for the orthopedic sports medicine market, has closed its acquisition of the bone growth stimulation device business from .

“We are very pleased to close this important acquisition,” said Les Cross, president and CEO of dj Orthopedics. “Strategically, this acquisition opens up new opportunities for the Company in fracture healing and in spinal fusion stimulation, each of which are growing faster than our core markets in orthopedic rehabilitation. The addition of the bone growth stimulation device business strengthens the financial profile of dj Orthopedics by accelerating our revenue growth and increasing our operating margins and our earnings per share. Additionally, the operating cash flow from the combined business will be strong, permitting rapid de-leveraging of our capital structure. I am also pleased to welcome the new management team members joining us with this acquisition, who will add further depth to the team we have assembled at dj Orthopedics, driving the Company’s future growth and profitability.”

OrthoLogic will now become purely a drug development company focused on commercializing several potential therapeutics comprising the Chrysalin® Product Platform.

This platform includes drug candidates for acceleration of fracture repair (phase III), spinal fusion (phase I/II) and articular cartilage defect repair (late-stage preclinical).

“We believe that the Chrysalin┬« Product Platform has tremendous potential in the exciting new world of orthobiologics,” said Thomas R. Trotter, OrthoLogic’s president and chief executive officer. “We will focus our efforts on accelerating the potential commercialization of a series of Chrysalin-based products for the worldwide orthopedic market.”

dj Orthopedics is a global orthopedic sports medicine company focused on the design, manufacture and marketing of products and services that regenerate and rehabilitate soft tissue and bone after trauma, help protect against injury and treat osteoarthritis of the knee. OrthoLogic is an orthobiologics drug-development company focused on fracture healing, spinal repair and orthopedic soft tissue repair.

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