Durham’s Bioventus registers for $150m IPO

Durham medical technology startup Bioventus registered on Thursday to raise up to $150 million in an initial public stock offering.

If the company completes the IPO, it would trade on Nasdaq under the ticker symbol BIOV. The exact amount to be raised, and total shares to be offered, would be disclosed at a future time.

The company reported in a Securities and Exchange Commission filing that it intends to use the proceeds of the IPO to pay off promissory notes and other debt that total $60 million, among other things.

Founded four years ago, Bioventus develops and markets treatments that enhance the body’s natural healing process in patients with musculoskeletal conditions. The treatments include injections for fracture healing and bone graft substitutes.

The company markets and sells products in the United States and 29 other countries. Most of Bioventus’ revenue comes from two product lines that have U.S. regulatory approval, including Exogen, an ultrasound system for healing fractures. The products are covered by Medicaid, Medicare and private health insurance.

Bioventus reported $65.4 million in sales for the third quarter ending April 2, up from $53.4 million a year earlier. The company posted a net loss of $6 million in the first quarter, compared to a net loss of $21 million a year ago.

Bioventus’ revenue increased from $232.4 million in 2013, to $242.9 million in 2014, and $253.7 million last year.

Its net losses have fluctuated between $22.4 million in 2013, $12.9 million in 2014, and $34.1 million last year.

The company’s SEC filing also shows that its top three executives were paid over $1.3 million in salary last year and twice as much in total compensation, including equity and non-equity payments.

Bioventus’ CEO, Anthony Bihl III, was paid a salary of $602,308 last year and a total compensation package of $1.3 million, including non-equity incentives.

CFO David Price made a salary of $356,760 last year, and total compensation of $642,675.

Henry Tung, general manager of Bioventus Surgical, was paid $361,278 in salary last year, and $735,482 in total compensation.

Bioventus reported in its SEC filing that it was founded in May 2012 when a group led by Essex Woodlands Health Ventures acquired a majority stake in the biologics business of Smith & Nephew.

Bioventus markets the products to orthopedists, sports medicine physicians, podiatrists, neurosurgeons and orthopedic spine surgeons.

Not all companies that file to raise funding through an IPO end up going forward with their plans, especially if the IPO market goes south.

This story was originally published June 30, 2016 at 1:27 PM with the headline "Durham’s Bioventus registers for $150m IPO."