Baxano Surgical recently engaged Houlihan Lokey as its financial advisor, as the company seeks strategic alternatives to its core business — minimally invasive spinal fusion products.
During the second quarter of 2014, Baxano reported $4.7 million in net revenue, but $5.9 million in net loss. When their financial report was released, the company was expected to reach third quarter revenue at $4.5 million to $5.5 million.
"We have made solid progress on the major milestones we set out to accomplish in 2014 including our new product launches, economic based clinical data and the building of our hybrid sales organization," said Baxano Surgical President and CEO Ken Reali.
An economic analysis accepted by the Journal of Managed Care Medicine shows pre-sacral interbody fusion performed with AxiaLIF can save around $3,500 when compared with a transforaminal lumbar interbody fusion. The AxiaLIF procedure was also associated with shorter hospital stays, reduced hospital readmissions and faster patient return to work.
This announcement comes just days after the company participated in the International Society for the Advancement of Spine Surgery's course to train surgeons on endoscopic and minimally invasive techniques. The company has been more involved with research and professional societies in recent months, and Frost & Sullivan recognized Baxano with the 2014 Product Line Strategy Leadership award for its MIS products, including the AxiaLIF.
Despite this interesting turn of events, Baxano was careful not to suggest the company would make any moves in the near future. The company doesn't plan to disclose or comment on developments regarding the "strategic alternatives" they might be exploring "until further disclosure is deemed necessary or appropriate."