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| PediLoc Extension Osteotomy Plate--Courtesy of OrthoPediatrics |
Pediatric orthopedics player OrthoPediatrics filed to raise up to $75 million in an IPO on Nasdaq, the company announced Thursday.
Warsaw, IN-based OrthoPediatrics was founded in 2006, when adult orthopedic implants were often modified in the operating room to be used in children. The company focuses on developing and producing orthopedic implants that are anatomically appropriate for children. Its products' applications span trauma, long bone deformity and correction, scoliosis and sports medicine. Since its founding, OrthoPediatrics has had 17 surgical systems cleared by the FDA.
Its offerings include the PediFlex Nailing System for the treatment of long bone fractures. It is designed with the remodeling capability of young bones in mind. The company also markets the PediLoc Extension Osteotomy Plate, which treats femur fractures and is designed to avoid compromising the growth plate.
In 2015, OrthoPediatrics posted $31 million in revenues, and had a net loss of $7.9 million, according to the SEC filing. And the previous year, it had $23.7 million in sales, but a loss of $7.9 million. In the filing, the company cited "older surgeons' familiarity with repurposing adult implants for use in children and our current lack of published long-term data supporting superior clinical outcomes by our products" as its main challenges to growth. It hopes to address these issues by targeting younger surgeons for training, collaboration and marketing, it said in the filing.
The company raised $1.4 million in its first round of funding in 2007, which it used to design and develop its initial product line. In 2009, it won a $2 million grant from the state of Indiana's 21st Century Research and Technology Fund to develop and commercialize its quiet cast removal tech. And in 2011, it closed a $20 million investment from a private individual investor.
It negotiated a $37 million equity investment with its largest shareholder, Squadron Capital, to support the launch of its Response Spine System and ACL Reconstruction System.
- here's the SEC filing