TranS1 IPO Surges 60% On First Day

It’s a good day for the folks at TransS1 (TSON). The company has pulled off a successful IPO, with the stock price surging more than 60% today.

What’s even more impressive is that the company is in a sector that’s out-of-favor, healthcare.

So what makes TranS1 different?

Well, the company certainly has strong technology (medical devices to help with back surgery). And the management team is strong. But it’s also crucial that the company has been focused on getting market adoption for its innovations. And one useful strategy is training. This is how TranS1 explains it (from the prospectus):

We devote significant resources to training and educating surgeons on the specialized skills involved in the proper use of our instruments and implants. We believe that the most effective way to introduce and build market demand for our products is by training spine surgeons in the use of our products. We accomplish our training objectives primarily through cadaver and surrogate models and live case observations with surgeons experienced in our TranS1 approach. After this training, surgeons are generally able to perform unsupervised surgeries using our TranS1 approach.

We supplement our training with online didactic tutorials. As of June 30, 2007, we had trained approximately 500 U.S. spine surgeons and 54 surgeons outside of the U.S. in the use of our products. Of the surgeons trained on our TranS1 approach, approximately 190 have performed a procedure in the 12 months ended June 30, 2007 using our TranS1 approach. We believe we have the necessary capacity to train a sufficient number of surgeons to meet our current goals.

More IPO analysis from Seeking Alpha and on DealProfiles.

Comments

[CB:]

This Video says it all, this company will be huge!
<www.samedaysurgery4u.c...;

How AxiaLIF is Performed
The surgeon accesses your low back through a 1-inch incision next to your
tailbone. The
center of the diseased disc is removed, and bone growth material is inserted in
its place.
This material helps stimulate bone growth over time in order to "fuse."

The AxiaLIF implant is inserted to distract the two vertebrae, meaning that any
height lost
from Degenerative Disc Disease is restored to its original, healthy disc height.

Your physician may or may not add posterior hardware for further stabilization
of your
spine after the AxiaLIF procedure has been performed.

What About Recovery?
The procedure is minimally invasive, so the scars are very small and the
procedure carries
less risks than a traditional "open" surgery. AxiaLIF does not cut through
important tissue
or nerves; therefore, the healing process is quicker and there is less
post-operative pain
commonly associated with traditional fusion surgery.

The AxiaLIF procedure time is about 45 minutes on average, and patients have
been
released from the hospital in as little as 24 hours, returning to work in as
little as 15 days.

2007 Oct 19 04:45 PM