NEW YORK–(BUSINESS WIRE)–Small Bone Innovations, Inc. (SBi), an orthopedics company focused exclusively on serving patients and their physicians with technologies and treatments for joint repair (arthroplasty) and trauma reconstruction around the small bone joints of the thumb, fingers, hand, wrist, elbow, toe, foot and ankle, announced that it has raised a total of $15 million of Series F Preferred shares.
The Series F funding was led by a fund formed by Viscogliosi Brothers, LLC. Khazanah Nasional Berhad, the investment firm of the Government of Malaysia, NGN Capital and other existing investors participated in this round of financing as well.
Anthony G. Viscogliosi, SBi’s Chairman & CEO, said: “We are highly encouraged by SBi’s favorable sales and business performance, given the state of affairs of the current orthopedic hip, knee and spine markets with declining procedure volumes and payor pushback. SBi’s performance is quite the contrary with year-to-date revenues through November 2010 growing 36% in North America, 14% (constant currency) internationally and 28% (constant currency) worldwide. We have rising procedure volumes and more payors allowing coverage for approved medical use of our technologies. Especially, the STAR™ total ankle joint replacement system continues to gain traction in North America and internationally. We believe the STAR total ankle joint replacement system holds the leading market share position in the US and globally.”
He went on to add, “The proceeds from the expansion capital will be used to continue to drive further growth of STAR, as well as the stable core upper limb arthroplasty and trauma reconstruction portfolio of products. We are highly encouraged with STAR’s performance, as well as the tremendous patient and surgeon feedback it has been receiving. We are committed to investing more in STAR’s future to better serve appropriate patients who would benefit from this technology in order to restore the form, function and motion of their ankle.”
SBi has been attracting considerable attention in recent months in both the financial and the orthopedics sector. 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” on March 9, 2010. Additionally, SBi was the 7thhighest ranked healthcare company and was 24th amongst all 50 companies highlighted.
SBi closed on $12 million in Series E funding from Olympus Corporation in March 2010. The company secured a $30mm debt facility from Fortress Investment Group to fund accelerated business expansion and refinance existing indebtedness in November 2009. In June 2009, SBi announced that it had raised $144 million in Series D and Series C rounds of financing. The investors in Series D round of financing included Goldman, Sachs & Co., Khazanah Nasional Berhad, Malaysian Technology Development Corporation (MTDC), an integrated Malaysian-based venture capital company, The Family Office of Bahrain, and existing investors Trevi Health Ventures, NGN Capital, 3i Group, and TGap Ventures. The Series C round of financing was led by Viscogliosi Bros., LLC and included new investor Trevi Health Ventures, and follow-on investments by NGN Capital, 3i, TGap Ventures and Axiom Venture Partners.
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
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.