Smith & Nephew spinout Bioventus filed to raise up to $150 million in an IPO on Nasdaq. The company, which makes noninvasive and surgical products for musculoskeletal ailments, is working its way toward profitability.
The Durham, NC-based company was founded in 2012, when a group of investors led by Essex Woodlands Health Ventures picked up a majority stake in Smith & Nephew’s ($SNN) biologics unit. Other investors, in addition to Smith & Nephew, include Spindletop Healthcare Capital, Pantheon Global, Ampersand Capital and Alta Partners.
Bioventus’ offerings include Exogen, a noninvasive device that stimulates bone healing by using ultrasound waves to activate cells near the site of the break. Clinical data show that the treatment accelerated the healing of a broken tibia or radius by 38%. It also markets the joint injection therapies for osteoarthritis, Supartz inside the U.S. and Durolane outside the U.S.
In 2014, the company created its Surgical unit via its acquisition of Advanced Biologics’ OsteoAMP product line in 2014. OsteoAMP is a tissue-based bone biologic used by spinal surgeons to promote bone growth and healing. In 2015, Bioventus purchased bioresorbable bone graft maker BioStructures.
Bioventus has shown upward momentum since 2013, growing its total net sales from $232.4 million to $242.9 million in 2014 and $253.7 million in 2015. Sales were driven by Exogen and Supartz, which together comprised 89% of sales in 2013, 87% in 2014 and 83% in 2015. The company is nearing profitability, having booked $65.4 million in net sales and a net loss of only $6 million in the quarter ended April 2.
According to an SEC filing, the company expects its Active Healing products, Exogen and Supartz, will continue to dominate its sales, but that it will expand its Surgical offerings. In the second half of this year, it plans to launch its GelSyn-3, a three-injection hyaluronic acid treatment to relieve pain from osteoarthritis of the knee.
- here's the SEC filing
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