Tornier (TRNX), a medical device company, priced its IPO at $19 per share on February 2nd with a first-day negative return of 5%.
Business Overview (from prospectus)
We are a global medical device company focused on surgeons that treat musculoskeletal injuries and disorders of the shoulder, elbow, wrist, hand, ankle and foot. We refer to these surgeons as extremity specialists. We sell to this extremity specialist customer base a broad line of joint replacement, trauma, sports medicine and orthobiologic products to treat extremity joints. Our motto of "specialists serving specialists" encompasses this focus. In certain international markets, we also offer joint replacement products for the hip and knee. We currently sell over 70 product lines in approximately 35 countries. We have had a tradition of innovation, intense focus on surgeon education and commitment to advancement of orthopaedic technology since our founding approximately 70 years ago in France by René Tornier. Our history includes the introduction of the porous orthopaedic hip implant, the application of the Morse taper, which is a reliable means of joining modular orthopaedic implants, and, more recently, the introduction of the reversed shoulder implant in the United States. This track record of innovation over the decades stems from our close collaboration with leading orthopaedic surgeons and thought leaders throughout the world.
Offering: 8.8 million shares at $19 per share. Net proceeds of approximately $115.2 million will be used for debt repayment.
Revenue increased by 15% to $166.1 million for the first three quarters of 2010 from $144.1 million for the first three quarters of 2009...Cost of goods sold increased by 17% to $45.6 million for the first three quarters of 2010 from $39.0 million for the first three quarters of 2009...Selling and marketing expenses increased by 13% to $93.7 million for the first three quarters of 2010 from $82.6 million for the first three quarters of 2009...Research and development expenses decreased by 12% to $12.7 million for the first three quarters of 2010 from $14.4 million for the first three quarters of 2009...Net loss increased $31.4 million for the first three quarters of 2010 from $24.9 million for the first three quarters of 2009...
The market for orthopaedic devices is highly competitive and subject to rapid and profound technological change. Our currently marketed products are, and any future products we commercialize will be, subject to intense competition. We believe that the principal competitive factors in our markets include product features and design, reputation and service. One of the key factors to our future success will be our ability to continue to introduce new products and improve existing products and technologies. In addition, we are committed to following the AdvaMed and Eucomed guidelines and codes of ethics in our interactions with customers and other healthcare professionals globally.