After the expiration of the 30-day quiet period since it has launched an initial public offering, LDR Holdings Chief Executive Officer Christophe Lavigne talks to Xconomy about the viability of spinal therapies companies in the market.
Lavigne and three other founders of LDR founded the company in the hopes of creating the gold standard of spine surgery in Troyes, France. Its flagship product, cervical disk replacement device Mobi-C have breathed life in patients who had spinal injuries by providing them greater flexibility and movement unlike traditional therapies, wherein the procedure would not give them maximum flexibility.
"Now, with the ability to insert this disc, we can restore the mobility of your neck. There are very few non-fusion options for surgeons in the surgical spine area," Lavigne said. Lavigne added that the company helps treat around 30,000 spinal patients annually.
LDR got listed in October and sought to raise USD75 million in its IPO. Lavigne said the proceeds from the IPO will help the company expand its marketing and sales presence in the US. Since 2005, the company has been based out of Austin and has operations in seven countries worldwide. LDR also sells its devices in 25 countries including Brazil and Japan.
LDR looked like it needed the fresh capital. Xconomy noted that the company reported a net loss of around USD8 million in the third quarter, which was triple is USD3 million loss it had incurred in the same period the previous year. However, LDR said that over half of the net loss amount was caused by noncash expenses incurred in the reevaluation of warrants that leads up to the IPO.
Despite the net loss, the spinal therapies market looked like to be a viable market. LDR faces competition in the market from companies including Johnson & Johnson division DePuy Synthes Spine, Medtronic Spine and Biologics, Nuvasive, Globus Medical, and Stryker, according to Seeking Alpha, an investor website.
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