2 Orthopedic Companies Go Public in 2021

By Carolyn LaWell

2 Orthopedic Companies Go Public in 2021

BIOVENTUS

Established in 2012 by a joint venture between Essex Woodlands and Smith+Nephew, Bioventus’ business is broken into orthobiologics and bone stimulation. Headquartered in Durham, North Carolina, the company has 700 employees located in more than 30 countries throughout the world.

Bioventus reported $222.6 million in revenue for the first nine months of 2020, -8.3% compared to the prior year. Their initial public offering netted them gross proceeds of $111.2 million.

Product Portfolio

We estimate Bioventus’ business is broken into 65% biologics and 35% bone stimulation. The company’s orthobiologics business is diverse with three hyaluronic acid therapies for knee osteoarthritis and various bone graft solutions, including allograft, cell & marrow and synthetic offerings.

Recent Developments

Bioventus remains one of the larger and more successful orthobiologics companies due to its worldwide distribution and payor coverage. The company is eyeing new novel products that it hopes will continue that growth.

Earlier this year, Bioventus announced enrollment of the first patients in its Phase 1 open-label, dose-escalation study of MOTYS (PTP-001). MOTYS is a placental tissue particulate comprised of amnion, chorion and umbilical cord tissue from full-term, healthy births and is provided sterile in micronized form. The study is evaluating the safety and efficacy of MOTYS to treat osteoarthritis of the knee.

Bioventus is also under an option structure with CartiHeal, whereby Bioventus will acquire the company following FDA approval of the Agili-C implant. Bioventus has invested $17.5 million in the company to date. CartiHeal, an implant for the treatment of joint surface lesions in traumatic and osteoarthritic joints, is undergoing a multinational pivotal Investigational Device Exemption study.

TREACE MEDICAL CONCEPTS

Founded in 2014, Treace Medical Concepts is a commercial-stage foot and ankle company seeking to drive a paradigm shift in the surgical treatment of Hallux Valgus. Based in Ponte Vedra Beach, Florida, the company has seen remarkable growth with just one product, the Lapiplasty 3D Bunion Correction System

For 2020, Treace reported revenue of $57.3 million in revenue, +45.5% vs. 2019. Treace announced preliminary unaudited revenue for 1Q21 will be $18.5 million to $18.7 million, +65% vs. 1Q20. The company’s gross proceeds from its IPO were expected at $106.3 million.

Product Portfolio

Treace developed the proprietary Lapiplasty 3D Bunion Correction System—a combination of instruments, implants and surgical methods designed to improve the clinical outcomes of traditional approaches to bunion surgery. The company said the number of Lapiplasty Procedure Kits sold in 1Q21 will be approximately 3,500 to 3,530, as compared to 2,187 for the same period in 2020.

Treace noted in SEC filings that 1.1 million Americans are deemed bunion surgery candidates each year, which represents a total addressable market opportunity of more than $5 billion.

The company’s website notes more than 40 patents for current products and those in development.

Leadership Force

Treace’s executive team and board of directors is made up of orthopedic veterans with extensive experience at startups, public companies and acquisitions.

John T. Treace, Founder and CEO, was formerly Senior Vice President of U.S. Sales and Global Marketing for Wright Medical. During his 12 years at Wright, he also served in a number of senior management roles, including V.P. of Marketing and G.M. – Biologics and Extremities.

Chairman of the Board is James T. Treace, the former President of Medtronic Xomed. Prior to its acquisition by Medtronic, in 1999, Mr. Treace served as CEO, President and Chairman of the Board of Xomed Surgical Products. Additionally, he held CEO positions at TreBay Medical Corp.; Concept, Inc., now known as Conmed Linvatec (CNMD); and Executive Vice President of Richards Medical, now known as Smith+Nephew.

Bioventus and Treace Medical Concepts are two very different companies seeking to be leaders within their respective spaces. Their ability to successfully launch an IPO provides them additional capital to continue their commercialization efforts.

Carolyn LaWell is ORTHOWORLD's Chief Content Officer.

Tags: Funding