Spinal Elements Holdings (SPEL) intends to raise $108 million in an IPO of its common stock, according to an S-1 registration statement.
Carlsbad, California-based Spinal Elements was founded to design spinal medical devices and instruments that utilize less invasive surgical techniques.
Management is headed by co-founder, president and CEO Jason Blain, who has been with the firm since and was previously manager of Product Development at NuVasive (NUVA).
The company’s primary offerings include:
- Spinal fixation systems
- Interbody implants
- Surgical instruments
Management says its existing portfolio ‘can address approximately 95% of the spine surgery procedures performed worldwide in 2018…’
Spinal Elements has received at least $57 million from investors including Kohlberg Funds.
The company sells its products primarily via ‘a network of over 200 independent distributors and over 400 surgeons across more than 500 hospitals and ambulatory surgery centers.’
Selling, G&A expenses as a percentage of total revenue have increased as revenues have fluctuated, likely due to the Covid-19 pandemic’s effects.
The Selling, G&A efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Selling, G&A spend, swung to negative (0.1x) in the most recent reporting period.
According to a 2019 market research report by iData Research, the global market for minimally invasive spinal surgery is expected to see significant growth through 2025.
The fastest growing market segment in the U.S. and Europe is forecast to be the spine endoscopy market though it represents the smallest market in terms of the number of procedures and unit sales numbers.
Below is a chart showing the relative sizes and historical and forecast growth rate trends for the MIS market:
The largest market for MIS procedures is expected to be the current baby boomer demographic of individuals over 60 years