<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, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0000889842 <NAME> SPINE-TECH, INC. <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 2,269,045 <SECURITIES> 20,128,444 <RECEIVABLES> 9,282,889 <ALLOWANCES> 461,862 <INVENTORY> 6,685,703 <CURRENT-ASSETS> 37,510,416 <PP&E> 7,656,805 <DEPRECIATION> 897,346 <TOTAL-ASSETS> 45,466,695 <CURRENT-LIABILITIES> 4,483,821 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 102,200 <OTHER-SE> 40,880,674 <TOTAL-LIABILITY-AND-EQUITY> 45,466,695 <SALES> 39,689,428 <TOTAL-REVENUES> 39,689,428 <CGS> 8,996,933 <TOTAL-COSTS> 8,996,933 <OTHER-EXPENSES> 18,988,262 <LOSS-PROVISION> 393,500 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 12,451,502 <INCOME-TAX> 4,983,000 <INCOME-CONTINUING> 7,468,502 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 7,468,502 <EPS-PRIMARY> .65 <EPS-DILUTED> .64