LDR’s IPO Bid, FDA OKs Give Spine Much Needed Adjustment

Article preview from Start-Up - September, 2013

The spine device firm LDR filed to raise up to $69 million in an initial public offering just as it gained FDA approval for its Mobi-C cervical disc for one- and two-level indications. Device investors will keep a close watch on the IPO, as one has not been staged by a venture-backed spine start-up since 2007.

LDR’s IPO Bid, FDA OKs Give Spine Much Needed Adjustment

Article preview from Start-Up - September, 2013

Medical device VCs have had to sit on the sidelines while biopharma VCs saw their start-ups make their way onto the public markets through initial public offerings of stock. But last month’s filing by LDR Holding Corp. could give device investors something to cheer about. No venture-backed spine start-up has staged a successful initial public offering in the US since TranS1 Inc. went public in 2007. The Austin, TX-based company, also known as LDR Spine, looking to end the drought, filed to raise up to $69 million from public investors.

LDR comes to public investors with an established business of selling its VerteBRIDGE fusion platform used in cervical and lumbar spine fusion procedures. Introduced in 2007, VerteBRIDGE products have been employed in more than 30,000 surgeries, according to the company. In addition to the fusion market, LDR now can dive into the crowded cervical disc replacement sector. FDA this month issued the company letters of approval allowing the commercial sale and distribution of its Mobi-C cervical disc, both for one- and two-level indications. The two-level indication presents an open field for LDR. No other device maker has FDA approval for a system addressing multiple levels of disease.

The addition of the cervical disc replacement products to the company’s pipeline certainly will strengthen the company’s IPO story, although to what degree remains to be seen. Some analysts say the field of competitors with one-level discs is already overcrowded.

Michael Matson, device analyst for Needham & Co., declined to comment specifically on LDR’s offering but noted the “the cervical disc market is small at around $100 million to $150 million per year in the US.”

Continued...

To read this article in its entirety, purchase now, as a PDF and recieve it immediately via email. Or get it free when you subscribe to Start-Up.

About Start-Up

No publication reviews leading edge companies and technology better than Start-Up. Each issue of Start-Up profiles the most important new product companies, identifies the hottest technology areas, reviews funds flowing into private companies and investment trends, and reports on university tech transfer licensing. Industries covered: pharmaceuticals, biotechnology, medical equipment & devices, and in vitro diagnostics.

Plus:
To find out about more about more about Elsevier Business Intelligence's medical device publications and databases, multi-user access and/or advertising with Medical Devices Today, please contact Kristy Kennedy at (480) 985-9512