Wilmington-based TranS1 Inc., maker of products that treat degenerative conditions of the spine, has acquired Baxano Inc., a Raleigh-based privately held medical device company. The company is relocating its headquarters to Raleigh.The company’s release stated that under the terms of the merger agreement, RacerX Acquisition Corp., a wholly owned subsidiary of TranS1, merged with and into Baxano, with Baxano remaining as the surviving corporation and as a wholly owned subsidiary of TranS1.At the close of the merger May 31, the company name was changed to Baxano Surgical Inc. On Monday, the company’s common stock began trading under the symbol BAXS.
“The creation of the new Baxano Surgical completes our transition to a high growth medical device company focused on minimally invasive spinal procedures, the fastest area of growth in the spine market. The increased scale of the combined company allows us to offer our surgeon customers a suite of proprietary and differentiated products,” Ken Reali, president and chief executive officer of TranS1 as well as the new Baxano Surgical Inc., said in the release.
In 2010, TranS1 opened a new office on Government Center Drive to house its administrative, research and development activities. Company officials could not be reached for comment Tuesday on whether Baxano Surgical will retain this Wilmington facility, and if layoffs are anticipated in Wilmington. The company has not filed a WARN notice with the North Carolina Department of Commerce, which would provide a required 60-day notice of plans to lay off large numbers of employees. Over the past two years, TranS1’s executive team has worked to expand sales of its signature AxiaLIF product while addressing an October 2011 subpoena from the federal Department of Health and Human Services’ Office of Inspector General. The subpoena required TranS1 to turn over records that might indicate it made false claims as to the efficacy of its products.
That issue was resolved, and the company succeeded last year in securing a Category 1 Current Procedural Terminology (CPT) code for a spinal fusion procedure using its AxiaLIF implant. That accomplishment, along with a recognition decision by several large private payors, meant that surgeons using the AxiaLIF approach could be reimbursed for the procedure.
TranS1 acquires company, moves HQ to Raleigh
Source:http://www.wilmingtonbiz.com
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