US-based medical technology firm, Xtant Medical Holdings, has closed a $15 million private placement. Selling 20 million shares of common stock at $0.75 a share the company accumulated $14.2 million in net proceeds after fees and deductions.
The orthobiologics specialist disclosed it expects to use the funds for “working capital and other general corporate purposes”.
Xtant Medical is increasing its product offerings. In March 2023 the company acquired Coflex’s product line including an interlaminar stabilisation device, from Surgalign in a deal valued at $17 million.
In the same month, the company released its fourth quarter and full year 2022 financial results. Fourth quarter 2022 revenue grew by 9% to $15.3 million, compared to $14 million for the same quarter in 2021. The full year 2022 revenue was valued at $58 million, compared to $55.3 million for 2021. Sean Browne, CEO of Xtant Medical was happy with the progress of the company’s growth strategy for 2023 and attributed the increase in revenue to its line of new products.
“We continue to generate robust demand for our biologics products, which grew 14% for the quarter, and improve our operating efficiencies by increasing our production capacity that now has us well-positioned to sustain our momentum in 2023. Additionally, with the addition of the Coflex product line, we significantly enhanced our fixation offering at ASCs and outpatient facilities,” said Browne.
During the COVID-19 pandemic the orthopaedic devices market experienced revenue losses but it has now bounced back going beyond the pre-COVID level globally.
According to GlobalData, the orthopaedic devices market is expected to reach nearly $50 billion in 2023. Trends that could have an impact on the market include a rising number of outpatient procedures, development of robotic surgeries, 3D printing in orthopaedic implants, regenerative medicine and inflation and supply chain issues.
