RTI Surgical — Merger or Acquisition (November 2018)
13 slides from RTI Surgical's merger presentation, Nov 2, 2018
Slide 1: RTI Surgical Acquires Paradigm Spine
RTI Surgical Acquires Paradigm Spine 11/1/2018 Exhibit 99.2
Slide 2: Disclaimer and Forward Looking Statements
This Investor Presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of RTI Surgical, Inc. (“RTI” or the “Company”) or any of its affiliates’ securiti
Slide 3: Our Path Forward
Our Path Forward Moderate growth, predictable margin, generates cash High margin, high growth, uses cash DESIRED OUTCOME Build a growing and sustainably profitable business that will treat more patients, create growth opportunities for us and value for investors RTI STRATEGY APPROACH BUSINESS STRATE
Slide 4: Executing Our Strategic Transformation
Executing Our Strategic Transformation Enhanced focus on optimizing core competencies Completed portfolio analysis to support divestiture of non-core assets Initiated $25M of cost reduction program in tissue manufacturing Implemented lean manufacturing concepts across global manufacturing Rebuilt pr
Slide 5: Differentiated Portfolio Expansion
Differentiated Portfolio Expansion Advancing a full line of high-quality hardware, interbody and orthobiologic options Acquisition accelerates RTI’s Spine strategy focused on differentiation and scale
Slide 6: Acquiring Paradigm Spine
Acquiring Paradigm Spine RTI is acquiring Paradigm Spine, a leader in motion preservation and non-fusion spinal implant technology RTI to acquire Paradigm Spine in a cash and stock transaction valued at up to $300 million, consisting of $150 million at closing plus potential future milestone payment
Slide 7: Transaction Rationale
Transaction Rationale Investment in differentiated technology that closely aligns with RTI’s M&A strategy Continuing growth in Europe; expanding Spine portfolio in strategic regions Investing in differentiated high-growth products in spine market while building scale Adding proven asset with attract
Slide 8: Paradigm Spine Overview
Paradigm Spine Overview Vision: Create the #1 company for addressing Lumbar Spinal Stenosis (LSS) Mission: Drive coflex® toward standard of care and treatment of choice for LSS What’s Next: Expand payor coverage, clinical evidence, drive to #1 market share in motion preservation Founded in 2004 ~100
Slide 9: Coflex®: Product Differentiation
Coflex®: Product Differentiation First and only PMA motion preserving stabilization implant for the treatment of moderate to severe spinal stenosis in conjunction with decompression High margin product profile Clinical evidence established non-inferiority to fusion and superiority to decompression ~
Slide 10: Coflex®: The Standard of Care
Coflex®: The Standard of Care Lumbar Spinal Stenosis Market Overview ~1.6 Million patients diagnosed annually Estimated Significant $3.3 Billion Market Opportunity Diagnosed spine condition and reason for spine surgery amongst elderly in North America Leads to faster recovery times with improved pat
Slide 11: Coflex®: Deep Clinical Heritage
Coflex®: Deep Clinical Heritage Demonstrated effectiveness based on 12+ years of clinical heritage 90+ peer reviewed studies High quality FDA premarket approved study Support from major spinal societies RTI’s Commitment to Products Supported by Clinical Data Ongoing Clinical Studies SImmetry – Evolu
Slide 12: Transaction Summary
Transaction Summary Acquiring Paradigm Spine, a leader in the field of non-fusion spinal implant technology Significant $3.3B market opportunity for LSS Addresses #1 diagnosed spine condition and reason for spine surgery amongst elderly in North America Adds differentiated, proven, high margin asset
Slide 13: Unique Growth Strategy Coming to Life
Unique Growth Strategy Coming to Life Transaction highlights RTI’s commitment to accelerating growth and driving shareholder value Acquiring Paradigm Spine accelerates RTI’s growth strategy in spine Underscores significant ongoing progress toward completing strategic transformation Focusing on diffe