Bonesupport is planning €60m IPO

Nasdaq Stockholm has approved the company’s application subject to customary conditions. Bonesupport said it wants to broaden ist shareholder base through issuance of up to 18,518,519 new shares to institutional investors and the general public, worth SEK500m (€51.2m). Furthermore, the company issued an over-allotment option of up to 2,777,778 new shares, corresponding to additional SEK75m (€7.7m) or a maximum of 15% of the total number of shares in the offering. The final price, set to be established by 21 June, will be determined in a book-building procedure and is expected to be set within the range of SEK27-31 per share (€2.76-€3.17), resulting in a market capitalisation of approximately SEK1.358-1.474bn (€139-€150.9m) if the over-allotment option is fully exercised. Lead investor Swedbank Robur and Co-investors have agreed to subscribe for shares in the offering equivalent to SEK236m (€24.17m). A prospectus with full terms and conditions was published on 11 June 2017.

The company markets injectable bioceramic bone grafts substitutes with targeted drug elution directly into the bone. Estimated annual revenues of its Cerament portfolio  increased by 61,5% to SEK113.8m (€m) in the 12 month period ending 31 March 2017. Cerament BVG, which is marketed in the US and Europe by Bonesupport’s partner Zimmer Biomet, is a bioceramic bone scaffold to treat bone voids, which remodels to host bone in 6-12 months. Cerament G and V, which are marketed in European but not yet in US markets, have all key properties of Cerament BVF but additionally contain the antibiotics gentamicin and vancomycin, respectively.

Bonesupport said it will use 25-30% of the IPO’s proceeds to drive market authorisation (PMA filing) and distribution of Cerament G in the US by 2021 and initiate Cerament V studies there. A pivotal study (FORTIFY) for Cerament G was initiated in February 2017 and the first patient was enrolled in May 2017. At the same time, the company intends to invest 10% of the estimated proceeds to build-out a commercial sales infrastructure in the US. Furthermore, Bonesupport wants to boost its marketing investments in existing markets. Further clinical studies and expansion of the current pipeline by two new candidates, will take approximately 40% of the raised capital.

“We believe our IPO will provide us with the funds we need to execute our strategy of driving sales in both the US 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 US approval for Cerament G,” said Richard Davies, Bonesupport’s CEO. “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.”