<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND STATEMENT OF OPERATIONS OF SPINE-TECH, INC. FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 </LEGEND> <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> SEP-30-1996 <CASH> 887,258 <SECURITIES> 16,664,296 <RECEIVABLES> 1,074,750 <ALLOWANCES> 60,583 <INVENTORY> 6,539,757 <CURRENT-ASSETS> 20,420,971 <PP&E> 5,911,644 <DEPRECIATION> 413,477 <TOTAL-ASSETS> 31,170,191 <CURRENT-LIABILITIES> 1,302,020 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 98,828 <OTHER-SE> 29,769,343 <TOTAL-LIABILITY-AND-EQUITY> 31,170,191 <SALES> 4,470,955 <TOTAL-REVENUES> 4,470,955 <CGS> 1,601,283 <TOTAL-COSTS> 1,601,283 <OTHER-EXPENSES> 6,330,280 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,389,179) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,389,179) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,389,179) <EPS-PRIMARY> (.24) <EPS-DILUTED> (.24)