Regenerative tissue developer Aziyo Biologics files for $58M IPO

Aziyo has partnered up with Medtronic, Boston Scientific, Biotronik, Surgalign and more to help promote and distribute its different tissue-based products for electronic implants, orthopedic procedures and soft tissue reconstruction. (Nasdaq)

Regenerative medicine company Aziyo Biologics has filed for a $57.5 million Nasdaq IPO, with plans to expand its marketing and clinical development programs.

With a focus on tissue-based products for patients receiving medical device implants, the company has previously partnered up with Medtronic, Boston Scientific, Biotronik and more—with its core, FDA-cleared offerings centered around cardiovascular and pacing implants, spinal repair and orthopedic procedures, and soft tissue reconstruction surgeries.

This includes a biological envelope designed to surround an electronic implant—which helps to secure the device in place while avoiding patient rejection and the formation of potentially harmful scar tissue—as well as regenerative bone repair products.

The Silver Spring, Maryland-based company also offers contract manufacturing of various bone, skin and soft tissue products for corporate customers.

Aziyo’s commercial partners also promote and commercialize a number of the company’s products through their own sales networks. This includes an exclusive agreement with Medtronic, inked in October 2019, to distribute its FiberCel bone graft matrix containing preserved living cells and demineralized bone fibers.

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That year the company also saw a deal with Boston Scientific to promote its CanGaroo tissue-based envelope for the device maker’s implanted pacemakers and defibrillators. More recently, Aziyo launched OsteGro V, a bone repair matrix for orthopedic, spinal, and dental applications.

According to Renaissance Capital, Aziyo brought in $42 million in total revenue spanning the first half of 2020 and the latter half of 2019. The pricing terms of the IPO were not disclosed.

Though net sales of Aziyo’s core products have increased over time—as well as during the COVID-19 pandemic this year—the company has incurred net losses, including $11.9 million for the 12 months of 2019, and $9.7 million for the first six months of 2020, according to its prospectus.