Kleiner Device Labs is a medical innovation company with a suite of surgical devices protected by 23 patents. The company launched a public offering in the fall of 2021 and while there is limited availability left in the offering, management expects it to oversubscribe shortly. The offering is hosted on a popular private equity platform Equifund, which allows investors of all types to buy shares in early-stage and pre-IPO companies.
Kleiner Device Labs was founded by Dr. Jeff Kleiner, a prominent spinal surgeon with over 25 years of experience and the mastermind behind the company’s innovative KG technology.
According to management, its breakthrough “KG System” has the potential to revolutionize the $14 billion spinal fusion market. The patented technology significantly enhances the first-time success rate of spinal surgeries while lowering operating costs and speeding up recovery times.
Kleiner Device Labs' initial product, KG1, successfully increased spinal fusion success rates from 75% to 92%. The KG1 has received U.S. Food and Drug Administration (FDA) Class II clearance and is now commercially accessible and sold in the United States and the United Kingdom.
The company’s latest technology, the KG2, or Solid State Fusion Platform, is an advancement on the KG1 system and delivers up to three times the amount of bone-grafting material compared to traditional spinal surgery approaches. KG2 received 510K clearance by the FDA this past fall and hopes to obtain a CE mark, which will allow them to sell the KG2 in the European Union.
The Kleiner Device Labs KG System and customized devices like the KG2 aim to accomplish a lot more than merely improving bone graft distribution.
Besides having the potential of increasing surgeries' success rate, the technology can also make surgeries faster, cheaper, easier and safer. It also reduces the risk of trauma to surrounding tissues and improves recovery times.
Management believes its technology has the potential to become the industry standard for more than 350,000 spinal fusion surgeries in the United States each year.
Kleiner Device Labs has managed to significantly enhance the first-time success rate of spinal surgeries while lowering operating costs and speeding up recovery times.
The ground-breaking technology is currently protected by 23 U.S. patents (with five more U.S. patents currently pending).
The company was recently granted FDA clearance for its next-generation KG2 device and plans to ramp-up commercial use shortly.
Based on comparable acquisitions in the spine space over the past several years, the company has the potential to generate a return of three to six times the initial investment in the next two to five years if it’s acquired by one of its target medical supply companies.
Due to high investor demand, there is limited space left in the company’s initial public offering.
How to Invest: The offering is available to non-accredited and accredited investors through Regulation CF on the Equifund crowdfunding portal.
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