Carlsbad, Calif.-based Aurora Spine is hoping to round up as much as $3.6 million through an initial public offering, launched today, through which the company is issuing nearly 5.2 million shares at a per-share price of 70¢.
The early-stage company develops spinal implants, with a focus in minimally invasive, regenerative technologies for patients with degenerative disc disease, according to a company statement. Aurora Spine in July won CE Mark approval in the European Union for its 1st spinal fusion product, and the company hopes to have FDA approval in hand before the end of the year, according to its long-form prospectus filed ahead of the IPO.
Aurora Spine began split as 2 separate entities, Aurora Spine Corp. of Ontario and Aurora Spine LLC of Nevada. The companies merged earlier this year, continuing as a Nevada entity with headquarters in Carlsbad. The pre-revenue company posted $1.4 million in losses in the fiscal year ended March 31, 2013, amounting to about 45¢ per share.
In its pre-IPO filings the company laid out its philosophy on the spinal implant market, promising to bring some much-needed innovation to a space facing serious headwinds.
"We believe that the market for spinal implants is in need of change, due both to global pricing pressures and outdated technology in use in the marketplace," according to the company. "We believe that doctors, patients, hospitals and payors are looking for advanced technologies produced by reliable vendors who understand their various needs. Aurora was founded in order to produce and sell what we believe will be intuitive, high-quality spinal products emphasizing simplicity of design and ease of implantation, in order to meet those needs. We believe that surgeons, the primary decision-makers in spinal implantation, will choose our products based on ease of installation, superior quality and effectiveness."
Funds from the IPO will go to ongoing development, testing and commercial launch of Aurora’s Zip L5-S1 Interspinous Fusion System. The company expects net proceeds from the IPO to amount to just over $3.5 million, according to regulatory documents.
Aurora’s not the only early-stage spinal company going IPO. Austin, Texas-based LDR Holding is also preparing its IPO, aiming to raise as much as $69 million, although the details of that offering have not yet been announced.
Also in the healthcare space, group purchasing organization Premier healthcare alliance is looking to launch an IPO with a goal of as much as $100 million.