SI-Bone Announces Potential Pricing for IPO

By Chris Lange Updated Jan 11, 4:51PM EST · Published Oct 5, 9:45AM EDT

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SI-Bone Announces Potential Pricing for IPO — © Petr Kratochvil / Public Domain Pictures

SI-Bone has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to list its 6.0 million shares in the range of $13 to $15 a piece, with an overallotment option for an additional 0.9 million shares. At the maximum price, the entire offering is valued up to $103.5 million. The company intends to list its shares on the Nasdaq under the symbol SIBN.

The underwriters for the offering are Morgan Stanley, Merrill Lynch, Canaccord Genuity and JMP Securities.

This medical device company has pioneered a proprietary minimally invasive surgical implant system, which is called iFuse, to fuse the sacroiliac joint to treat sacroiliac joint dysfunction that often causes severe lower back pain. Since the firm introduced iFuse in 2009, more than 34,000 procedures have been performed by over 1,700 surgeons, in the United States and 33 other countries.

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Published clinical studies have shown that 15% to 30% of all chronic lower back pain is associated with the sacroiliac joint. The company believes iFuse is currently used in the majority of minimally invasive surgical fusions of the sacroiliac joint in the United States.

The company detailed its finances in the filing as follows:

In 2016 and 2017, we generated revenue of $42.1 million and $48.0 million, respectively, a growth rate of 14%, and incurred net losses of $20.6 million and $23.0 million, respectively. Our gross margins were 88% and 89% for 2016 and 2017, respectively. For the six months ended June 30, 2017 and 2018, we generated revenue of $22.5 million and $26.4 million, respectively, a growth rate of 17%, and incurred net losses of $12.5 million and $7.3 million, respectively. Our gross margins were 89% and 92% for the six months ended June 30, 2017 and 2018, respectively. The number of iFuse procedures performed in the six months ended June 30, 2017 and 2018 was 2,739 and 3,200, respectively.

SI-Bone intends to use the net proceeds from the offering for sales and marketing activities. The remainder will be used for working capital and general corporate purposes.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.