Medical technology continues to boom all over the DMV region. The latest big biotech news comes out of Leesburg, Va. where spinal device maker K2M Group Holdings announced they will file for up to $100 million in an upcoming IPO. K2M has been invested in creating ways of treating spinal diseases with minimally invasive surgery for about a decade now.
Not surprisingly, that kind of work is expensive and the company posted a revenue of nearly $158 million, a loss of a little less than $38 million in the fiscal year. The money raised in the IPO will go into paying down some of that debt and expanding distribution for their products.
The product line is somewhat impressive. There are spinal deformity adjustments, spine stabilization devices and even ways to promote the growth of healthy spinal tissue for people with degenerative diseases that grow worse over time. To put in the devices, the company has also created a set of surgical tools that minimize the trauma of spinal surgery, which not surprisingly is very delicate work that can go wrong in a lot of ways. At this point the company has nearly 60 products sold in 27 countries.
Unlike most biotech companies that pick names to evoke the idea of medicine or biology, K2M is named after the K2 mountain, the second-highest in the world. Their products follow the geographic theme with names like Denali, Everest and Serengeti. It certainly makes them stand out.
The company initially announced the planned IPO to the SEC in January, only now though has it come out with the details of the offering and it's expected value.
