Alphatec Holdings Inc (NASDAQ:ATEC) Gains On Positive Developments
Alphatec Holdings Inc (NASDAQ:ATEC) had a spate of good news for its investors over the past two days. It began with the company announcing strong results for its 4Q and full year 2013 operations.
Expressing happiness at the strong close out to the fiscal year, company Chairman of the Board and Chief Executive Officer Leslie H. Cross has been quoted to have said that, “2013 was a pivotal year for Alphatec, and I’m very pleased by the record results of the organization delivered. During the last two years, our strategy has been to strategically improve the overall operations of the Company in order to strengthen sales and overall profitability
Details Of Settlement
On the same earnings call, it also disclosed that it had reached a mutually agreeable settlement with OrthoTec LLC, as per the terms of which all ongoing legal cases between the two firms would stand withdrawn. In lieu of the no claims, mutual release, the medical equipment maker will pay OrthoTec LLC $49 million over the next seven years. The payout will be broken into multiple payments of which $17.5 million will be paid up front. Rest of the payments will happen on a quarterly basis and will attract interest payment. The arrangement was reached by Alphatec Holdings Inc (NASDAQ:ATEC) on behalf of its fully owned subsidiary Surgiview S.A.S.
In light of the removal of uncertainty surrounding the legal wrangle, and the big build up in its operational momentum, the analyst community led by Canaccord Genuity has raised the ratings of the company to a Buy and also raised the price target to $3 from its market price of $1.7. It is appropriate to note here that the rating agency resumed coverage on the stock yesterday.
On the back of these positive developments, investors trooped into the stock and helped rising the market valuation during yesterday’s training by 6.25 percent.