Ellipse Technologies has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $75 million. The company intends to file on the Nasdaq Global Market under the symbol MGEC.
The underwriters for the offering are Piper Jaffray, Canaccord Genuity, William Blair and Oppenheimer.
This medical technology company is focused on revolutionizing orthopedic surgery by developing and marketing a new generation of magnetically adjustable implant systems based on its MAGnetic External Control (MAGEC) technology platform. The novel and proprietary implants are adjustable at the time of implantation and non-invasively over the course of treatment to accommodate the changing clinical needs of patients as they heal, grow or age.
MAGEC technology enables physicians to customize therapy for patients while reducing the need for multiple repeat surgical procedures, which provides significant improvements in patient clinical outcomes and quality of life while generating significant cost savings to the health care system. It has commercialized two highly differentiated product families: MAGEC-EOS spinal bracing and distraction system for treatment of early onset scoliosis and PRECICE limb lengthening system (PRECICE LLD) for treatment of limb length discrepancy. These products incorporate MAGEC technology and have been used to treat over 4,000 patients worldwide.
The company estimates the global addressable market opportunity for these commercial products was approximately $1.2 billion in 2014, based on data from Life Science Intelligence, which included addressable markets of approximately $571 million for the MAGEC-EOS system and approximately $708 million for the PRECICE LLD system. In addition, product candidates leveraging the MAGEC technology addressed a significant global opportunity of over 690,000 procedures in 2014, according to this data.
In the filing, the company described its finances as follows:
For the years ended December 31, 2013 and 2014, our net revenue was $12.0 million and $25.7 million, respectively, and our net losses were $5.3 million and $3.2 million, respectively. For the nine months ended September 30, 2014 and 2015, our net revenue was $18.1 million and $32.6 million, respectively, and our net losses were $1.6 million and $7.2 million, respectively. We expect to continue to incur losses for the next few years. Through September 30, 2015, we had an accumulated deficit of $41.8 million.
Ellipse intends to use the net proceeds from this offering to expand its sales and marketing programs, to fund research and development activities and for working capital and general corporate purposes.