This sounds more profound than luxating patellae. We have a little Shih Tzu pup who comes to play groups with us who is missing three vertebrae at the base of her spine. She has a hopping gait and actually can run - of course she looks a bit funny while doing it. I'm sure there will be some issues down the road with wear and tear from the poor alignment and such, but she is a cheerful girl and very well adjusted otherwise. Do get your vet's opinion about what to do, and as others have said, hope the parent dogs are out of the breeding program.
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