Market Overview

SI-Bone's IPO: What You Need To Know

SI-Bone's IPO: What You Need To Know

Medical device company SI-Bone, Inc. is set to begin trading on the Nasdaq Global Market under the ticker symbol “SIBN.”

The Company

SI-Bone has pioneered a minimally invasive surgical implant system to fuse the sacroiliac joint, according to its S-1 filing. The iFuse treatment is used to treat dysfunction of a joint that is a key cause for lower back pain.

The sacroiliac joints connect the sacrum, near the base of the spine, to the iliac bones of the pelvis.

Since its induction in 2009, the iFuse has been used over 34,000 times by more than 1,700 surgeons in the U.S. and 33 countries, according to the filing.

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“Published clinical studies have shown that 15-30 percent of all chronic lower back pain is associated with the sacroiliac joint. We believe iFuse is currently used in the majority of minimally invasive surgical fusions of the sacroiliac joint in the United States.”

Revenue has increased from $42.1 million in 2016 to $48 million in 2017, a growth rate of 14 percent. Gross margins were 88 percent in 2016, 89 percent in 2017 and 92 percent in 2018, while the amount of iFuse procedures performed surged from 2,739 in 2017 to 3,200 in 2018, according to SI-Bone. 

The Details

SI-Bone intends to offer 6 million shares of common stock, according to the S-1 filing. The company aims to raise $98 million from the sale of its stock and expects to use $65 million for sales and marketing strategies in support of continued commercialization.

The remainder of the net proceeds will likely be used to acquire or invest in complementary products or technologies.

The main underwriters of the IPO are Morgan Stanley, Canaccord Genuity, Bank of America Merrill Lynch and JMP Securities.

The stock opened for trade around 10:45 a.m. Wednesday at $15. 

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