Greatbatch proposes spin-off to its Algostim Subsidiary

Greatbatch has announced that Algostim, a subsidiary of Greatbatch’s QiG Group, may undergo a tax-free spin-off, according to a press release.

Algostim was established in 2008 to design and develop a broad-based neurostimulation platform. The first application of the program was Algostim’s Algovita Spinal Cord Stimulation system, with additional QiG applications currently in development.

If the spin-off proposal is approved, it would create a new publicly traded company focused on commercializing the Algovita Spinal Cord Stimulation system, according to the company release. The system received CE mark for European use in June, and an application has been submitted for premarket approval with the FDA.

“Spinning-off Algostim would provide both entities the focus and flexibility needed to execute their growth initiatives, their strategic imperatives and provide their respective customers with unparalleled service. The end result would further advance the global medical device market and enhance shareholder value,” Thomas J. Hook, president and CEO of Greatbatch, said in the release.

The spin-off must have final approval of the Greatbatch board of directors. If approved, the spin-off is expected to be completed by the end of 2015. The spin-off must also receive confirmation of the tax-free nature of the transaction, and the effectiveness of a Form 10 registration statement to be filed with the U.S. Securities and Exchange Commission, among other conditions.

Reference: www.greatbatch.com.