SUPERIOR, Colo. -- OrthoNetx, Inc., a privately-held, Colorado-based leading provider of medical devices for osteoplastic surgery, today announced that it has acquired PrivaComp, Inc. (www.privacomp.com), a privately-held healthcare information technology company in a stock exchange transaction. In a separate transaction, OrthoNetx entered a standard licensing agreement with a third party for an U.S.-issued patent. This patent combined with the acquisition of PrivaComp creates a proprietary platform for OrthoNetx' SmartDevice-Connect solution for medical device remote monitoring and risk management.
PrivaComp, Inc. is a healthcare information technology company that has created a platform incorporating HIPPA and EU standards for healthcare information security and privacy. PrivaComp's IT platform also delivers multimedia education, training and legally valid informed consent, entirely online.
"This exciting acquisition puts us in a position to transform our distraction osteogenesis devices into 'smart devices', and will enable us to bring this same innovative approach to other manufacturers of medical devices as well as devices we acquire via merger or acquisition," said Terry R. Knapp, President and Chief Executive Officer of OrthoNetx, Inc. "This is an approach to patient safety and medical device risk management that we expect the healthcare industry and its regulatory authorities to embrace."
In addition to the PrivaComp acquisition, OrthoNetx has licensed a US patent that also underpins its SmartDevice-Connect solution. SmartDevice-Connect integrates medical devices with hardware and software to enable almost any medical device to acquire information from the body and send it over the web in a protected fashion to a database. This facilitates a secured communication from the device to the relying doctors and patients. It also allows manufacturers to monitor, with the patients' permission, the safety and performance of its devices in the patient population. SmartDevice-Connect creates remote medical device monitoring in patients to provide safety and medical device risk management such as registration, tracking, adverse event reporting and outcomes reporting. This capability accrues to the benefit of patients, doctors and responsible manufacturers.
The Chief Technology Officer of PrivaComp, William Hughes, PhD, anticipates joining OrthoNetx as Vice President of Information Technology. Dr. Hughes holds a BA in Applied Physics, an MSEE and a PhD in Electrical and Computer Engineering (University of California). He has held academic posts at the University of California and University of Colorado, Boulder. He has served industry both as a consultant (Altro Group) and in several executive capacities (Internal Integration Manager for McDonnell Douglas Corporation, General Manager of Columbine Data Systems, and Chief Scientist for Calay Systems, Inc., a CAD software firm). Most recently in service to the U. S. Government, he was in charge of developing an IT architecture for a national criminal justice information system.
On September 6, 2005 OrthoNetx, Inc., announced it has signed a definitive merger agreement with Eye Dynamics, Inc. (OTCBB:EYDY), a leading provider of health and safety products, with Dr. Knapp to lead the merged companies as CEO.
About OrthoNetx, Inc.
OrthoNetx, Inc. designs, develops, manufactures and markets patented, FDA-approved medical devices and systems for osteoplastic surgery and distraction osteogenesis-the practice of generating, forming and molding bone. Physician customers include plastic surgeons, oral and maxillofacial surgeons, otolaryngologists, and orthopedic surgeons who correct deformities and deficiencies of the skeleton caused by errors of birth, trauma, infections and tumors. OrthoNetx, Inc. is also developing a "smart device" process management system to support a broad range of medical devices that leverage the body's physiological and biological attributes to create medical benefits. The privately-held company is headquartered in Superior, CO. From more information visit: www.orthonetx.com.
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This news release includes forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the company's periodic filings with the U.S. Securities and Exchange Commission.
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