US-based medical device producer SI-Bone has filed for a $97.8m initial public offering on the Nasdaq Global Market that will give pharmaceutical firm Novo the chance of an exit.
SI-Bone has developed a surgical implant called iFuse that fuses the sacroiliac joint in order to combat joint dysfunction that can lead to intense lower back pain. It launched the second iteration of the system, the iFuse-3D, in 2017.
The company increased its revenue for the first half of the year from $22.5m in 2017 to $26.4m this year, while cutting its net loss from $12.5m to $7.3m over the same period. The IPO proceeds will go to sales and marketing and general corporate purposes.
The offering will follow roughly $103m of venture funding, the most recent of which came in a $20.5m round in 2016 led by venture capital firm Arboretum Ventures and backed by all SI-Bone’s major existing investors.
Novo invested in SI-Bone as part of a $33m round, which also featured life sciences investment firm Orbimed, VC firm Skyline Ventures and investment firm Montreux Equity Partners, in 2014.
Novo’s stake is worth less than 5% of the company, whose largest investors are Skyline Venture Partners (26%), Montreux Equity Partners (12.9%), Arboretum Ventures (9.5%), Redline Capital Management (6%) and OrbiMed (5%).
Morgan Stanley and BofA Merrill Lynch have been appointed joint book-running managers for the IPO while Canaccord Genuity and JMP Securities are co-managers.