Bioventus Registers for $150 Million IPO

By Barry Teater, NCBiotech Writer

The Exogen device uses ultrasound waves to activate cells near the site of a bone fracture, stimulating the body’s natural healing process. --Bioventus photo

Durham-based Bioventus, a global orthobiologics company with growing sales revenues, has filed for a $150 million initial public offering (IPO) of stock.

The company would use some of the proceeds to pay off $28.5 million in debt from its 2015 purchase of BioStructures, a California company that developed bone graft products, and the balance would go toward unspecified corporate purposes, according to Bioventus’ June 30 registration filing with the U.S. Securities and Exchange Commission.

The company’s stock would trade on the Nasdaq Global Market under the symbol “BIOV.”

Bioventus did not disclose an exact amount to be raised in the IPO. The $150 million figure given in the filing is only an estimate for determining the SEC’s registration fee. The amount could change substantially prior to the IPO, or the IPO could be cancelled.

Bioventus reported total outstanding debt of $60 million.

Revenues have risen steadily since the company was created in 2012. Bioventus had revenue of $232 million in 2013, $243 million in 2014 and $254 million in 2015.

Bioventus products sell in 30 countries

Bioventus sells therapies to help patients heal from bone and joint diseases, injuries and surgeries. Its products, currently marketed in the U.S. and 29 other countries, include:

• Exogen, a device that uses ultrasound waves to activate cells near the site of a bone fracture, stimulating the body’s natural healing process.
• Two hyaluronic acid injection therapies, Durolane and Supartz, for lubricating painful joints damaged by osteoarthritis. A third one, GelSyn-3, is scheduled for commercial launch later this year.
• Three products used by orthopedic surgeons: Cellxtract, a device for harvesting cells and marrow from bone cavities; OsteoAMP, bone grafts containing growth factors; and Signafuse, a bioactive bone graft putty.

Bioventus is also developing a next-generation bone graft called bone morphogenetic protein, or BMP, that is in pre-clinical testing.

The annual market for orthobiologics in the United States is about $3 billion and is expected to grow 4 to 5 percent per year for the next five to seven years, Bioventus said in its SEC filing.

Bioventus was formed in 2012 when Smith & Nephew, a global medical technology business, spun out its biologics division in Durham in partnership with Essex Woodlands, a healthcare growth equity firm, and other investors. The company has about 660 employees worldwide.