Strategic alliance between Arcam and DiSanto Technology to offer EBM-designed and -manufactured medical implants

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The partnership combines leading Additive Manufacturing technology with full-service product application development and contract manufacturing services.

Arcam AB (“Arcam”), listed on NASDAQ OMX and market leader in EBM-based Additive Manufacturing technology, has signed a strategic alliance agreement with DiSanto Technology Inc. (“DTI”) in Shelton, CT, USA, a full-service medical device contract manufacturer. The parties will offer customers, including industry-leading orthopedic and spinal implant companies, comprehensive product application development and manufacturing of EBM-based implants and other components.

By offering the combined capabilities of both organizations to each of their existing and new customers, the strategic alliance shall serve to accelerate market adoption and penetration of commercially manufactured, finished EBM-based implants and components. The strategic partnership will leverage Arcam’s EBM technology with DTI’s expertise in engineering and producing finished components.

As part of the strategic alliance agreement, Arcam will support the expansion, equipping and operation of DTI’s manufacturing capability of finished parts made with Arcam’s EBM technology. The strategic alliance agreement calls for DTI to initially purchase two EBM systems to be delivered and installed at DTI.

The two companies will exhibit together at the American Academy of Orthopedic Surgeons (AAOS) 2013 Annual Meeting (Chicago, March 20-22) and at the Orthopedic Manufacturing Technology Conference (OMTEC) exhibition (Chicago, June 12-13).

“This partnership with DTI is an important strategic step for Arcam. Our EBM technology has been used for manufacturing of implants in Europe since 2007, and in the US since 2010. To date some 30 000 orthopedic implants manufactured with EBM technology have been implanted worldwide. Arcam has many customers that have purchased EBM systems to develop and manufacture EBM-based product applications. Through this alliance with DTI, we will now also be able to offer existing and new customers contract manufacturing capabilities and help them commercialize new product applications. This will in turn give our customers the opportunity to more quickly and more efficiently develop products and get them to the market”, says Magnus René, CEO of Arcam.

“We are very pleased to be the manufacturing partner of Arcam.  We are excited about incorporating Arcam’s proprietary EBM technology into our manufacturing capability offering to our existing and new customers. This will enable us to help such customers in rapidly developing product applications and to commercially produce such products for them with Arcam’s cost-efficient, regulatory-cleared Additive Manufacturing technology”, says Ron Dunn, CEO of DiSanto Technology Ltd.

Financing and approvals

In connection with the strategic alliance agreement, Arcam will provide capital to and arrange financing for DTI to support its EBM-based manufacturing capability. The securities underlying the financing provide for potential minority cross-ownership positions in each other. Furthermore, as part of the strategic alliance, Arcam has an option to acquire DTI in its entirety any time during the first two years of the strategic alliance. Consequently, the strategic alliance agreement is conditional upon the approval by Arcam’s shareholders at an Arcam General Meeting. The details of the financing arrangement will be described in a separate notice to the General Meeting of Arcam AB.

About DiSanto Technology, Inc.

DTI was founded by Ottavio DiSanto in 1967 as a general contract manufacturer. Over the years, the company has specialized in contract manufacturing of orthopedic implants and today the company has a clientele consisting of major orthopedic device companies. DTI provides its customers with engineering, development and production of implants and instruments of metal and plastic implants and components.  DTI is certified to ISO 9001, ISO 13485 and the company is registered with the FDA as a contract manufacturer. The company is located in Shelton, Connecticut, an area with a thriving implant industry.

About Arcam AB

Arcam provides a cost-efficient Additive Manufacturing solution for production of metal components. The technology offers freedom in design combined with excellent material properties and high productivity. Arcam’s market is global with customers mainly in the orthopedic and aerospace industries. The company was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. Head office and production facilities are located in Mölndal, Sweden. Support offices are located in the US, UK, Italy and China.

For further information:

Magnus René, CEO, Arcam, office: +46 31 710 32 00
cell: 0702-79 89 99 or e-mail: magnus [dot] rene [at] arcam [dot] com