SBi Announces Impressive First Half 2010 Revenue Growth with S.T.A.R.® Ankle Securing Its Position as the Leading Total Ankle Replacement System in the World
- SBi is the #1 ankle company in the world
- 35% growth in the first half of 2010 exceeds overall industry growth rate
NEW YORK–(BUSINESS WIRE)–Small Bone Innovations, Inc. (SBi), a leading, privately held orthopedics company focused primarily on arthroplasty and trauma reconstruction technology and treatments for the small bones & joints, recorded strong revenue growth of 35% in the first half of 2010. SBi revenues increased 45% in the first quarter and 26% in the second quarter.
“I am extremely pleased to announce SBi’s impressive growth throughout the first half of the year. This performance is especially noteworthy given the fact that global orthopedic revenue growth has been slowing in the second quarter as elective surgeries are down due to a soft economy.”
Geographic gains were also strong. Revenues in North America grew 44% in the first quarter, 33% in the second quarter and 38% in the first half of 2010. International performance was also robust with revenues rising 47% (39% in constant currency) in the first quarter, 15% (21% in constant currency) in the second quarter and 30% (30% in constant currency) in the first half of the year.
Anthony G. Viscogliosi, Chairman & CEO of SBi, said: “I am extremely pleased to announce SBi’s impressive growth throughout the first half of the year. This performance is especially noteworthy given the fact that global orthopedic revenue growth has been slowing in the second quarter as elective surgeries are down due to a soft economy.
“SBi’s significantly above market growth rates can be attributed to our fast growing upper and lower limb product systems, highlighted by the S.T.A.R.®, total ankle replacement system that has been implanted in more than 17,000 patients worldwide and is growing well, complemented by a solid core business.
I am also happy to note that we anticipate that at least 10 of our product systems will each generate well in excess of $1 million in revenues this year, exhibiting the breadth of our SB&J portfolio,” Mr. Viscogliosi reported.
The S.T.A.R. total ankle replacement system, that received pre-market approval (PMA) from the FDA on May 27, 2009, is indicated for replacement of painful arthritic ankle joints affected by osteoarthritis, post-traumatic arthritis or rheumatoid arthritis.
The S.T.A.R. is the only three-piece, cementless, mobile-bearing, total ankle replacement system to receive a PMA from the FDA. Its titanium plasma spray coating allows for better bone in-growth, stabilization and bone preservation.
In close consultation with leading foot and ankle surgeons, SBi simplified the implant procedure and facilitated reproducibility of successful outcomes. To date, SBi has trained more than 500 foot and ankle surgeons throughout the world during the introduction and phased launch of the S.T.A.R. in North America and the re-launch of the S.T.A.R. under the SBi brand name in key international markets.
Of the approximately 390,000 patients in the US diagnosed annually with ankle arthritis, SBi believes that as many as 70,000 of them could benefit from the S.T.A.R. implant. The company also believes it is well positioned to take full advantage of a vastly underserved market and, more importantly, enable surgeons to advance the standard of patient care.
Mr. Viscogliosi added, “Based upon the growth in the monthly volume of total ankle replacement surgeries, we understand that the S.T.A.R. has quickly become the number one total ankle replacement system in the world. The instrumentation, best-in-class training, high surgeon acceptance and strong supporting clinical evidence have been key drivers of this significant accomplishment.”
Additionally, the company noted that the two most prominent foot and ankle societies, the American Orthopaedic Foot & Ankle Society (AOFAS) and the American College of Foot & Ankle Surgeons (ACFAS), have each issued position statements in support of total ankle replacement following the FDA PMA approval of S.T.A.R.
SBi has been attracting considerable attention in recent months in both the financial and orthopedics sectors. Out of nearly 5,200 companies considered, SBi was the only orthopedic company on the list of the top 50 U.S. VC-backed companies in the Wall Street Journal article “Sizing Up Promising Young Firms” (March 9, 2010). SBi was the 7th highest ranked healthcare company and was 24th amongst the 50 companies selected.
SBi closed on $12 million in Series E funding from Olympus Corporation in March 2010. In November 2009, the company secured a $30mm debt facility from Fortress Investment Group to fund accelerated business expansion and refinance existing indebtedness.
Earlier last year SBi closed on $144 million in Series D and Series C funding from a host of investors including: Goldman, Sachs & Co.; Khazanah Nasional Berhad (the investment firm of the Government of Malaysia); Malaysian Technology Development Corporation (MTDC), an integrated Malaysian-based venture capital company; The Family Office of Bahrain; Viscogliosi Brothers, LLC; Trevi Health Ventures; NGN Capital; 3i Group; and TGap Ventures, among others.
About Small Bone Innovations, Inc.
Small Bone Innovations, Inc. (SBi) was founded in 2004 by Viscogliosi Brothers, LLC (VB), a New York-based merchant banking firm that specializes in the musculoskeletal/orthopedics sector. VB created SBi as the first company to focus purely on small bones & joints. By integrating established companies and professionals in the field, SBi offers a broad, clinically proven portfolio of products and technologies to treat trauma and diseases in small bones & joints. Today, SBi has facilities in New York, NY, Morrisville, PA, Bourg-en-Bresse, France, Donaueschingen, Germany, and Kuala Lumpur, Malaysia and has sold its products in 46 countries.
For more information on SBi, please visit: www.totalsmallbone.com
Forward-looking statements
This news release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting SBi’s business including increased competition; the ability of SBi to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks.
