Spine Tingling After LDR Holdings’ IPO
This article was originally published in Start Up
Spine company LDR Holdings Corp. helped signal a turnaround in the spine industry with a successful IPO in October, netting $80 million. Privately, venture capitalists are reporting greater interest in their companies from Wall Street bankers, but should LDR’s success be seen as a strong signal for devices?
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Device companies finished 2013 strong, raising $1.2 billion in Q4, the highest quarter total of the year. CVS Caremark’s $2.1 billion buy of Apria’s infusion therapy business was the largest M&A of the year, and late-stage venture rounds dominated the $423 million total in diagnostics funding.
The spine device firm LDR filed to raise up to $69 million in an initial public offering just as it gained FDA approval for its Mobi-C cervical disc for one- and two-level indications. Device investors will keep a close watch on the IPO, as one has not been staged by a venture-backed spine start-up since 2007.
Though the company's founders played a crucial role in the development of the first artificial lumbar disc replacements, LDR has itself always taken a somewhat conrtrarian view toward the promise of lumbar disc replacement. Rather the company is betting on the promise of cervical discs, while rounding out its lumbar line with more traditional fusion approaches.