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| LDR's Mobi-C spinal implant--Courtesy of LDR |
Just a few weeks out from winning FDA approval of its spinal disc implant, Texas devicemaker LDR filed plans with the U.S. Securities and Exchange Commission to go public for up to $69 million.
LDR has a slate of orthopedic products for spinal procedures, including its newly approved Mobi-C Cervical Disc designed to provide mobility to the spine. According to the company's S-1, the Mobi-C is "the first and only cervical disc replacement device to receive FDA approval to treat both one-level and two-level cervical disc disease." The cobalt-chromium and polyethylene implant is designed to mimic natural cervical spine motion.
Also noted in the S-1 are LDR's incurred net losses for the last three years, bringing about an accumulated deficit of $60.7 million through the end of June 2013. But LDR is hopeful for the market opportunity in the spinal implant arena, citing industry sources who estimate a $9.6 billion global market, $7 billion of which stays in the U.S. And the U.S. market is expected to grow to about $9 billion by 2018, LDR's sources estimate.
LDR plans to list on the Nasdaq under the symbol "LDRH." The company did not specify how many shares it would offer nor the cost of each share.
But can LDR win over investors on the shoulders of a highly specific field and such a newly approved device? Med tech IPOs are in a bit of a lull so far this year, continuing a several-year trend that has companies blaming regulatory uncertainties and lowered expectations. This stands in contrast to the burgeoning biotech realm, in which 29 outfits have gone public so far this year.
"We believe our VerteBridge and Mobi platforms enable products that are less invasive, provide greater intra-operative flexibility, offer simplified surgical techniques and promote improved clinical outcomes for patients as compared to existing alternatives," LDR notes in the S-1. "Industry sources expect that the currently emerging cervical disc replacement market will be one of the fastest growing segments of the U.S. spine implant market."
Piper Jaffray, William Blair & Company, and Bryan, Garnier & Co. are acting as joint book-running managers for the proposed offering. Cowen and Co., JMP Securities and Stephens Inc. will act as co-managers.
- here's the S-1