SMALL BONE INNOVATIONS,
INC. RAISES $144 MILLION
- Raises Series D round of $108mm - one of the largest private
equity capital financings for an orthopedic company
- Raises Series C round of $36mm
- Retires $20 million credit facility
York, NY: June 30, 2009 - Small Bone Innovations, Inc.
(SBi), an orthopedics company focused exclusively on technologies
and treatments for the small bones & joints, announced
that it has sold a total of $108 million of Series D Preferred
Stock in a series of private equity financings. The most recent
of these financings closed in April 2009. The Series D financing
is believed to be one of the largest ever private equity capital
investments in an orthopedics company.
The Series D funding included substantial investments from
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, and certain
other substantial investors.
The Series D financing also included investments from existing
investors Trevi Health Ventures, NGN Capital, 3i Group, and
Anthony G. Viscogliosi, SBi’s Chairman & CEO, said:
“In view of the extremely difficult conditions in the
global capital markets during the past 18 months, the scope
and quality of this investment round represent both a vote
of confidence in our business model and a recognition of the
small bone & joint market as the fastest growing sector
in the orthopedics market. The size of the investment in SBi
is significant in view of the 51 percent decline this year
in medical device investing by venture capital firms - according
to VentureSource (a DowJones database).”
In addition to the Series D financing round, SBi completed
in 2008 its Series C Preferred Stock financing, raising a
total of $36 million. This 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.
The proceeds from the Series C and Series D financings were
used in part to complete the acquisition of the Scandinavian
Total Ankle Replacement (S.T.A.R.®) system from Waldemar
Link GmbH & Co. KG of Hamburg, Germany, to fund operations,
to support the launch of the S.T.A.R. Ankle in the U.S. and
to retire a $20 million credit facility, arranged in 2007
by Fortress Investment Group.
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 exclusively
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. SBi has facilities
in New York, NY, Morrisville, PA, Bourg-en-Bresse, France
and Donaueschingen, Germany.
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.