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
  • Biologics

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:

spinalmkt

The largest market for MIS procedures is expected to be the current baby boomer demographic of individuals over 60 years



Lloyd Blankfein wearing a suit and tie: Brendan McDermid/Reuters


© Brendan McDermid/Reuters
Brendan McDermid/Reuters

  • Goldman Sachs’ former CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money is clearly creating bubble elements in the markets.” 
  • The banking titan blamed low interest rates for creating free money for large investors. 
  • Blankfein also cited speculation in the growing SPAC market: “Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan.”

Former Goldman Sachs CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money” due to low interest rates is “clearly creating bubble elements in the markets.”

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“Given that money is kind of free, it presumably is not being allocated in a disciplined way, and so there are bubble elements to this,” Blankfein said. “Look at the credit market — people are lending to what historically would have been weak credits for very little money.”

The banking titan also referred to the SPAC market as a sign that the market is taking on much speculation lately. In this year alone, about 110 blank-check firms led by notable investors like Chamath Palihapitiya and Bill Ackman have raised over $40 billion on public markets. That’s over $26 billion more than what last year’s SPACs raised.

Read more: Citi’s US equities chief warns of an ‘extreme peak’ in earnings revisions heading into the crucial reporting season — and explains why it makes stocks vulnerable to a pullback in the weeks ahead

“Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan,” Blankfein said. 

The banking titan can be added to the growing list of investors voicing concerns about the speculative nature in markets. Last week, venture capitalist Bill Gurley said the stock market reminded

  • Goldman Sachs’ former CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money is clearly creating bubble elements in the markets.” 
  • The banking titan blamed low interest rates for creating free money for large investors. 
  • Blankfein also cited speculation in the growing SPAC market: “Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan.”

Former Goldman Sachs CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money” due to low interest rates is “clearly creating bubble elements in the markets.”

“Given that money is kind of free, it presumably is not being allocated in a disciplined way, and so there are bubble elements to this,” Blankfein said. “Look at the credit market — people are lending to what historically would have been weak credits for very little money.”

The banking titan also referred to the SPAC market as a sign that the market is taking on much speculation lately. In this year alone, about 110 blank-check firms led by notable investors like Chamath Palihapitiya and Bill Ackman have raised over $40 billion on public markets. That’s over $26 billion more than what last year’s SPACs raised.

Read more: Citi’s US equities chief warns of an ‘extreme peak’ in earnings revisions heading into the crucial reporting season — and explains why it makes stocks vulnerable to a pullback in the weeks ahead

“Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan,” Blankfein said. 

The banking titan can be added to the growing list of investors voicing concerns about the speculative nature in markets. Last week, venture capitalist Bill Gurley said the stock market reminded him of the dot-com bubble of the