Orthopediatrics Corp. · NASDAQ:KIDS
Orthopediatrics — Merger or Acquisition (April 2020)
11 slides from Orthopediatrics's merger presentation, Apr 1, 2020
Slide 1: Acquisition of ApiFix Ltd.
Acquisition of ApiFix Ltd. April 2, 2020
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer 2 Forward - Looking Statements This presentation includes "forward - looking statements" within the meaning of U . S . federal securities laws . You can identify forward - looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "cou
Slide 3: OrthoPediatrics Strategy
OrthoPediatrics Strategy 3 OP is following a strategy of developing a portfolio of Early Onset Scoliosis (EOS) and Non - Fusion scoliosis correction products. 1. Early Onset Scoliosis (EOS) • Developing a 2 nd generation growing rod for scoliosis • In 2019, acquired rights to novel pediatric device
Slide 4: ApiFix MID-C System
ApiFix MID - C System 4 ApiFix Ltd. is a leading pioneer in motion - preserving scoliosis correction technology and has developed a least invasive surgical system. ApiFix Ltd. Minimally Invasive Deformity Correction (MID - C) System HDE approved 8/23/19 Minimally Invasive Deformity Correction (MID -
Slide 5: Only Non-Fusion Technologies
Only 2 Non - Fusion Technologies 5 ApiFix’s MID - C system is one of only 2 FDA approved (HDE) non - fusion scoliosis correction systems and the only one approved for posterior dynamic deformity correction. • The first pediatric Humanitarian Device Exemption (HDE) approvals in the past 25 years • HD
Slide 6: About ApiFix Ltd.
6 • ApiFix Ltd. located in Misgav, Israel and Boston, MA • 9 employees • Led by Boston - based executive, Paul Mraz, who has led multiple early stage medical device companies over the past 30 years • Mraz will join OrthoPediatrics post - acquisition as a senior officer • Strong IP protection: 46 gra
Slide 7: A Disruptive Scoliosis Correction Solution
A Disruptive Scoliosis Correction Solution ApiFix’s Minimally Invasive Deformity Correction (MID - C) System • Surgery time 1 - 2 hours • Least Invasive Surgical Solution - Posterior, unilateral approach (vs. anterior thoracic with Tether) - No thoracic surgeon; no need to collapse the lung • Post -
Slide 8: ApiFix's Patient Advantages
Incision Size 45cm+ (Posterior) 15 - 20 cm (Posterior) Thorascopic (Anterior) Surgery Time 4 - 6 hours 1 - 2 hours 3 - 4 hours Blood Loss 800cc - 1000cc 50cc 100cc - 200cc Hospitalization 4 - 7 days 1 - 2 days 3 - 5 days (ICU?/Chest Tube?) Recovery Time 6+ months 1 - 2 weeks 2 - 4 months Results/Not
Slide 9: A Novel Surgical Option
A Novel Surgical Option ApiFix is a Viable Alternative to Failed Bracing and Spinal Fusion for the Treatment of Progressive Scoliosis Fusion Surgery Curves > 50º Exercise Curves < 25º B r ac e Curves 25º - 40º ApiFix System Curves 4 0º - 60º 9
Slide 10: Summary
• Non - Fusion is the holy grail of pediatric scoliosis surgery • Patients, families, surgeons choosing Non - Fusion over traditional fusion • Fusion market will decline while Non - Fusion will grow • A piFix offers significant advantages • ApiFix is a u nique t echnology w ith s trong IP p rotectio
Slide 11: Milestones and Terms
Milestones At Closing $2M cash plus 934,768 shares OP stock Earlier of 150 U.S. surgeries or 2 nd anniversary $13 million (stock and/or cash) 4 th anniversary of closing 2.25x LTM revenue (stock and/or cash)* * Guaranteed minima by 4 th anniversary 3 rd Anniversary $8 million (stock and/or cash) 4 t