Valorem Surgical, NHS Bio Enter Joint Venture Agreement

Valorem Surgical, a Chicago, Ill.-based manufacturer of cranial, interventional, and spinal fusion instrumentation is acquiring an equity interest in NHS Bio Co. Ltd., a South Korean contract OEM manufacturer. The pair launched a new joint venture company to handle the sales, marketing and distribution initiatives for Asia Pacific, Valorem Surgical AP.

Under terms of the joint venture agreement, the new company, Valorem Surgical AP (Asia Pacific), will be formed to operate NHS Bio’s branded spine businesses in South Korea, Japan, India, China, Southeast Asia, and other East Asian markets.

The new venture will build on Valorem Surgical’s sales and marketing expertise, along with NHS Bio’s spinal MIS technologies, and both companies’ products in the region and beyond.

“We are excited to have Valorem Surgical as our partner. We’ve taken our time to find a partner that understands Asia and matches our drive, passion and aspiration,” said KJ Jeon, CEO of NHS Bio.

Valorem Surgical and NHS Bio have maintained a relationship under an OEM agreement for instrumentation sets since 2012. Under the terms of the agreement, Valorem Surgical will acquire an equity position in NHS Bio for an undisclosed cash amount, and its spinal portfolio. Details about the creation of the joint venture company for Asia Pacific were not available.

“By partnering with NHS Bio, Valorem Surgical is taking an important step in developing our position with an initial focus on the emerging markets within Asia Pacific,” said Joseph Jin, president/CEO of
Valorem Surgical.

The deal, expected to close in Q1 2015, is subject to approval by NHS Bio stockholders, regulatory approvals, and other customary closing conditions. There are no financing conditions associated with the agreement.

NHS Bio, newly incorporated in April, 2014, is a South Korean-based manufacturer of orthopedic spinal instrumentation that was, until recently, part of the medical device division of Winnova affiliated with Wooridul Spine Hospital.