Alphatec Holdings' Products Lack Innovation And Losses Are Growing (Target Of $3, 50% Downside)

About: Alphatec Holdings, Inc. (ATEC), Includes: CFMS, NUVA, SYK
by: White Diamond Research
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White Diamond Research
Long/short equity, short only, Growth, special situations

Alphatec (ATEC) is up 400% over the past year based on 12 new spinal implant product offerings that we show are flawed and are mostly copy cats of the competition.

ATEC’s new CEO, Patrick Miles, is alleged to have blocked Nuvasive (while working there as an executive) from buying Alphatec, calling it a “waste of time".

To capture customers, ATEC has SG&A expense growing faster than revenues, which is unsustainable.

Insiders have sold $2M worth of stock in 2019, mainly by ATEC’s legal counsel while the company is in patent lawsuits.

With questionable products and leadership, we give a $3 price target to ATEC.

Executive Summary

Alphatec Holdings, Inc. (ATEC) is a medical technology company that designs, develops, and markets products for the surgical treatment of spine disorders. The stock has skyrocketed about 400% over the last