BoneSupport said this week that it’s planning to float an initial public offering that would fetch roughly $62 million at the midpoint, not including an over-allotment option.
The Swedish company, which is developing the Cerament G injectable antibiotic-eluting bone graft substitute, said it plans to offer more than 18.5 million shares at $3.13 to $3.59 apiece (SEK 27 to SEK 31) on the NASDAQ Stockholm exchange, for total proceeds of $57.9 million to $66.4 million (SEK 500 million to SEK 574 million).
The proposed offering, which is set to price June 21, also includes a 2.8-million-share over-allotment worth another $8.7 million (SEK 75 million). Lund, Sweden-based BoneSupport said its investors have already agreed to acquire about $36 million (SEK 236 million) worth of shares in the flotation.
About 25% to 30% of the proceeds are earmarked for a bid for pre-market approval from the FDA for Cerament G, hoped for by 2021, plus clinical studies for its Cerament V product in the U.S. Another 10% is slated for a buildout of BoneSupport’s U.S. sales force, with about 40% planned for other clinical work and adding a pair of products to the pipeline, the company said.
“BoneSupport’s rapid sales growth reflects the clear benefits that our Cerament-based products deliver to patients, surgeons and payers when used to treat bone voids. We believe our IPO will provide us with the funds we need to execute our strategy of driving sales in both the U.S. and Europe, generating additional clinical data to enhance the competitive positioning of our products in trauma and revision arthroplasty and completing the Fortify study, which is a key to gaining U.S. approval for Cerament G,” CEO Richard Davies said in prepared remarks. “Our stronger financial position will also allow us to invest in our pipeline of products that are designed to promote bone growth, an area of significant unmet medical need. We believe that by executing this strategy we can deliver our 2020 financial targets and continue to generate significant value for our shareholders.”
($1 = SEK 8.63993)