Bankruptcy Trustee Launches Sale of Innovative Spinal Technologies, Inc. Assets

The Bankruptcy Trustee for spinal implant manufacturer Innovative Spinal Technologies expects to submit sale proposals to the court by July 10, 2009.

Boston, MA (PRWEB) June 25, 2009 -- The bankruptcy trustee for medical device firm Innovative Spinal Technologies announced that the process of selling the company's extensive patent portfolio is well under way.

Founded in 2002 as a spin-off from the Texas Back Institute, IST quickly expanded in 2005 after then-CEO Scott Shorer raised $39 million in private equity from various funds including MPM Capital and Orbimed Advisors. In 2007 the company launched its Paramount VBR System for minimally invasive spine surgery. The same year, a multi-site study showed that use of the IST Paramount MIS pedical screw system reduced procedure times 38% compared to conventional open surgical procedures. When IST was forced to close its doors, it was in the process of seeking FDA clearance for the AXIENT system, an innovative spinal implant designed to allow preservation of motion while providing significant pain relief. IST built a large patent portfolio, including more than one hundred patents and patent applications, but had not been able to develop a sale strategy to generate the cash flow needed to cover expenses and support continued development.

On May 15, 2009, IST filed a chapter 7 bankruptcy petition in Massachusetts, and Warren E. Agin was appointed as its bankruptcy trustee to liquidate the company's assets. On June 23, 2009, Mr. Agin announced in court that he is soliciting offers to purchase the assets, including intellectual property assets, and expected to submit sale proposals to the court soon after July 10, 2009. According to the trustee, several companies have already expressed an interest in bidding on the assets, although he has not yet received any offers.

According to a schedule attached to the bankruptcy petition, the company also had nine cadavers in its surgical center at its premises. The cadavers have been properly removed from the premises in accordance with instructions provided by the deceased or their families.

About Swiggart & Agin, LLC

Swiggart & Agin, LLC, in Boston, Massachusetts, provides legal services to companies. The firm represents companies in the information technology sector, and also provides bankruptcy and insolvency related services to companies and individuals.

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