Kyphon Announces International Expansion Plans
New Manufacturing, Distribution and R&D Facility in Neuchatel, Switzerland
SUNNYVALE, Calif.,
March 15, 2006 /PRNewswire-FirstCall via COMTEX News Network/
Kyphon Inc. (Nasdaq: KYPH) today announced that it is establishing an
operational presence in the Canton of Neuchatel, Switzerland to support the
company's rapid international growth. Kyphon Sarl, the newly created Swiss
company, will house manufacturing and distribution activities for Kyphon's
international markets, as well as administrative activities including clinical,
regulatory, marketing and shared financial services. In addition, certain
global research and development activities will be performed by Kyphon Sarl,
which will serve to augment Kyphon's current research and development center in
Sunnyvale, California.
Kyphon's international revenues increased 87% in 2005 versus the prior year, with international markets representing 19% of the company's global sales during the most recent reporting quarter. The decision to establish a major facility overseas was in response to the growing needs of Kyphon's international markets, coupled with the company's desire to establish additional manufacturing capacity and gain access to new technical talent.
"One of the key priorities of our 2006 operating plan is to continue to drive the expansion of our international business," commented Richard Mott, President and Chief Executive Officer of Kyphon. "With our strong sales performance in overseas markets and the substantial progress we've been making on the regulatory and reimbursement fronts there, we believe additional investment in these markets should allow us to further capitalize on the opportunities they present. By establishing manufacturing, logistics and R&D activities in Europe, we are also increasing the company's overall manufacturing capacity and innovation pool. We consider the establishment of our Swiss operations as a sign of our commitment to our international markets and a milestone in our growth as a global company."
"We believe
our new operations in Neuchatel, Switzerland will provide us with the
logistical flexibility, scalability and technical talent to better serve our
existing markets and to pursue development of additional overseas markets,"
stated Robert Vandervelde, President, International of Kyphon. "We
selected Neuchatel in part due to its proximity to leading universities,
R&D centers, orthopaedic industry suppliers and the pre-existing cluster of
healthcare, medical device and biotechnology companies. We believe our location
in the heart of such a region ensures access to a pool of highly educated,
multi-lingual talent and innovative partners. In addition, the central location
within Europe and the area's excellent infrastructure should allow us to
provide optimal
support to our customers' logistical and administrative needs. We look forward
to leveraging this important investment in our international markets into
increased productivity and profitability across our global business operations
going forward."
Kyphon Sarl is beginning administrative operations immediately, and anticipates that it will have full manufacturing, distribution, R&D and administrative activities in effect by the end of 2007.
About Kyphon Inc.
Kyphon develops and markets medical devices designed to restore spinal function
using minimally invasive technologies. The company's KyphX line of products are
used in balloon kyphoplasty, a minimally invasive procedure to treat spinal
fractures caused by osteoporosis or cancer. For more information, visit
Kyphon's Web site at http://www.kyphon.com. Kyphon and KyphX are registered
trademarks of Kyphon Inc.
SOURCE Kyphon Inc.
Julie D. Tracy, Vice President, Investor Relations and Corporate Marketing, of
Kyphon
Inc., +1-408-548-6500 or jtracy@kyphon.com
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