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Alphatec: Gaining Footing...

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Shares of Alphatec Holdings Inc. (ATEC), which touched a 52-week high of $5.24 in intraday trading on Thursday (July 25, 2019), are up more than 123 percent year-to-date.

Alphatec is a medical technology company developing and marketing spinal surgery implants used in the treatment of spine disorders. The Company has two wholly-owned subsidiaries, Alphatec Spine Inc. and SafeOp Surgical Inc.

In a bid to reduce its outstanding debt, and enable continued investment in commercialization and allow for the expansion of its U.S. business, Alphatec sold its international business to Globus Medical (GMED), a musculoskeletal implant manufacturer, in July 2016. Currently, Alphatec markets its products only in the U.S. via independent sales agents and a direct sales force.

Here's how the Company has fared in terms of revenue in the years after the divestiture of its international business.

2018 Vs 2017

Revenue Sources20172018
U.S. products$86.9 Mln$83.6 Mln
Intl. supply agmt$14.8 Mln$8.04 Mln
Total revenue$101.74 Mln$91.69 Mln

With new products being launched, the Company's revenue growth is increasingly outpacing the continued revenue impacts of transitioning or discontinuing non-strategic distributor relationships.

Alphatec, which is targeting 12 new product launches in 2019, has launched 7 new products so far this year.

1H2019 Vs 1H2018

Revenue Sources1H20181H2019
U.S. products$39.6 Mln$49.05 Mln
Intl supply agmt$3.74 Mln$2.83 Mln
Total revenue$43.35 Mln$51.87 Mln

Alphatec ended June 30, 2019, with cash and cash equivalents of $18.6 million. In March 2019, the Company closed its expanded credit facility with Squadron Medical Finance Solutions, providing for up to $30 million in additional financing, as needed. During the second quarter of 2019, the Company drew $10 million against the credit facility.

Based upon its performance in the first half of 2019, the Company has increased its full-year revenue guidance.

For the full year 2019, the Company now expects U.S. product revenue to range between $100 million and $104 million, up from its prior forecast of $94 million to $98 million. Revenue from international supply agreement for the year is expected to be in the range of $4 to $5 million. So, the total revenue for 2019 is expected to be between $104 and $109 million, representing 13% to 19% growth over 2018.

The Company is targeting revenue of $200 million in 2022.

Given the fact that Alphatec is working its way through launching new products, revitalizing its sales channel, and improving product adoption, it looks like the Company "is just getting started."

ATEC has traded in a range of $1.18 to $5.24 in the last 1 year. The stock closed Thursday's trading at $5.04, up 9.57%.

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