Hanger Orthopedic Group, Inc. Announces a Commercialization Agreement Between Its Subsidiary, Innovative Neurotronics, and Teijin Limited for the WalkAide System in the Japanese Market
BETHESDA, Md., July 16 /-- Hanger Orthopedic Group, Inc. announced today an agreement under which Hanger's wholly-owned subsidiary Innovative Neurotronics, Inc. (IN, Inc.) has granted Teijin Pharma Limited exclusive rights to develop and commercialize IN, Inc.'s initial product offering, the WalkAide® System, in Japan. Teijin Pharma Limited is a wholly owned subsidiary of Teijin Limited, a multinational corporate enterprise headquartered in Osaka, Japan. The WalkAide System is a technology that employs functional electrical stimulation to combat lower limb neuromuscular paralysis.
"This agreement is a significant milestone in IN, Inc.'s strategy to extend the adoption of its WalkAide System technology," IN, Inc. President Jeff Martin said. "We are delighted that one of Japan's leading healthcare companies will be working with us to make the WalkAide System available to the many thousands of people in Japan who can benefit from this advanced technological solution to neuromuscular impairment due to stroke, partial spinal cord injury, and traumatic brain injury."
"The consummation of this partnership is further validation of our technology and is a major step towards developing effective global distribution channels for our solution," added Ivan Sabel, Chairman and CEO of Hanger Orthopedic Group, Inc.
Under the terms of the agreement, Teijin Pharma Limited will be responsible for achieving regulatory approval to permit the WalkAide System to be marketed in Japan. It will also be responsible for attaining public reimbursement for the WalkAide System in Japan. Cleared by the U.S. Food and Drug Association in September 2005 and made available in the United States in May 2006, the WalkAide System achieved ISO 13485:2003 and ISO 9001:2000 certification from BSI, Inc. in October 2006, a requirement to obtain marketing approvals in Japan.
The WalkAide System employs functional electrical stimulation to treat a form of paralysis known as "foot drop" due to stroke, spinal cord injury, traumatic brain injury, and other pathologies such as multiple sclerosis and cerebral palsy. By applying low level electrical currents directly to a motor nerve in the leg, the portable WalkAide instructs the muscle to flex the foot so the patient can walk more normally.
A study published in the September 2006 issue of the peer-reviewed journal Neurorehabilitation and Neural Repair suggests the WalkAide can reveal hidden potential for additional patient recovery and mobility. The walking speed of patients wearing the WalkAide increased by 15% after three months. With continued usage, patients' walking speed increased by 32% after six months and by nearly 50% after twelve months. The study also showed the number of steps taken per day by WalkAide users increased significantly over the year.
About Hanger:
Hanger Orthopedic Group, Inc., headquartered in Bethesda, Maryland, is the world's premier provider of orthotic and prosthetic patient care services. Hanger is the market leader in the United States, owning and operating 619 patient care centers in 45 states and the District of Columbia, with 3,461 employees including 1,027 practitioners (as of 3/31/07). Hanger is organized into four units. The two key operating units are patient care which consists of nationwide orthotic and prosthetic practice centers and distribution which consists of distribution centers managing the supply chain of orthotic and prosthetic componentry to Hanger and third party patient care centers. The third is Linkia which is the first and only provider network management company for the orthotics and prosthetics industry. The fourth unit, Innovative Neurotronics, introduces emerging neuromuscular technologies developed through independent research in a collaborative effort with industry suppliers worldwide. For more information on Innovative Neurotronics, Inc. or the WalkAide, visit www.ininc.us/. For more information on Hanger, visit http://www.hanger.com/.
About Teijin:
Teijin is a global technology-driven group operating in five main fields: synthetic fibers; films and plastics; pharmaceuticals and home health care; trading and retail; and IT and new products. Teijin Limited is listed on the Tokyo and Osaka stock exchanges and has a market capitalization of USD 5.25 billion. The company had consolidated sales of USD 8.5 billion in fiscal 2006, and employs approximately 19,000 people worldwide. Its Pharmaceuticals and Home Health Care Group, led by Teijin Pharma, offers both pharmaceuticals and medical devices, enabling provision of total health care solutions. This set-up allows the group to pursue highly efficient business development in both its pharmaceuticals and home health care businesses. For more information on Teijin, visit www.teijin.co.jp/english/index.html. For more information on Teijin Pharma, visit http://www.teijin-pharma.co.jp/english/index.html.
Certain statements included in this press release are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please refer to the Company's SEC filings for factors that could cause actual results to differ materially from the Company's expectations.
Contacts: George McHenry, 301-280-4500, gmchenry@hanger.com
Jennifer Bittner, 301-280-4869, jbittner@hanger.com
Source: Hanger Orthopedic Group, Inc.
CONTACT: George McHenry, +1-301-280-4500, gmchenry@hanger.com, or Jennifer Bittner, +1-301-280-4869, jbittner@hanger.com, both for Hanger Orthopedic Group, Inc.
Web site: http://www.hanger.com/
http://www.teijin.co.jp/english/index.html
http://www.teijin-pharma.co.jp/english/index.html
