By Pragyan Kalita
Oct 7 (Reuters) – Medical device maker Centinel Spine revealed a 42% rise in first-half revenue in its US initial public offering filing on Wednesday.
The filing comes against an uncertain backdrop for the fall IPO market, as rising bond yields and high interest rates have dampened investor appetite and prompted several major companies to delay their listings.
Here are some more details:
• The West Chester, Pennsylvania-based company posted net income of $10.2 million on revenue of $85.2 million for the six months ended June 30, compared with a net loss of $503,000 on revenue of $60.1 million a year earlier.
• Centinel Spine develops replacement discs designed to preserve movement in the cervical and lumbar spine, offering an alternative to spinal fusion, which permanently eliminates motion at the treated level.
• Its prodisc platform has been used in more than 300,000 implantations worldwide and is supported by more than 590 peer-reviewed clinical papers, according to the company.
• “One of the notable factors in Centinel’s filing is its ability to combine strong revenue growth with profitability, which distinguishes it from many healthcare companies approaching public markets,” IPOX Research Associate Lukas Muehlbauer told Reuters.
• “At the same time, the company’s exclusive focus on total disc replacement creates concentration risk, leaving it somewhat exposed to changes in reimbursement policies and competing technologies.”
• Centinel Spine plans to use the offering proceeds to repay debt and invest in its sales infrastructure, patient-awareness programs, clinical trials etc.
• Morgan Stanley, Goldman Sachs, Piper Sandler, Canaccord Genuity and BTIG are underwriting the offering.
• It plans to list its shares on NYSE under the symbol “CNTL.”
(Reporting by Pragyan Kalita in Bengaluru; Editing by Anil D’Silva)
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