5 Things to Know About LDR's Q1 2014 Financial Results

Written by Anuja Vaidya | May 12, 2014 | Print  |

 

LDR is a global medical device company, with headquarters in Troyes, France and Austin, Texas, focuses on designing and commercializing surgical technologies for the treatment of spinal disorder patients.

LDR's primary products are based on its VerteBRIDGE fusion and Mobi non-fusion technology platforms and are designed for applications in the cervical and lumbar spine.

 

1. The company announced a net loss of $3.5 million in the first quarter of 2014, down from the same period last year when the company suffered a net loss of $2.6 million. LDR's revenues for Q1 2014 reached $31.1 million, up from its revenues in Q1 of 2013, which reached $25.8 million. The company also reported gross profits of $25.8 million in Q1 of this year.

 

2. "Our exclusive technology products grew at a strong rate again this quarter, aided by the availability of Mobi-C in the U.S. market, and higher revenues in both our cervical and lumbar product lines," said Christophe Lavigne, president and CEO. "We were very pleased that the American Medical Association granted a Category 1 CPT code for two-level cervical disc replacement, effective January 1, 2015."

 

According to Mr. Lavigne, the AMA action is an important milestone for LDR as it provides surgeons with certainty regarding the payment rate for the two-level procedures they perform and will facilitate Mobi-C reimbursement.

 

The Mobi-C is the first cervical disc replacement device approved by the FDA for both one- and two-level indications.

 

"We are gratified by the strong interest among spine surgeons in education and training sessions for Mobi-C, the first and only cervical disc replacement device to receive FDA approval to treat both one-level and two-level cervical disc disease," he also said.


3. Several trials and studies have examined the efficacy of LDR's Mobi-C. One trial examined LDR's Mobi-C investigational device exemption results, finding that ACDF patients with kyphotic C2-C7 angle at 24 months had significantly worse outcomes in NDI score, satisfaction and SF-12 Mental Component Score than those with lordic C2-C7. It also found that there was no significant difference in outcomes between the C2-C7 lordic and kyphotic Mobi-C patients at 24 months after surgery. This is an improvement over patients who received fusion.

 

The results of the trial were published and the paper won the International Society for the Advancement of Spine Surgery's Charles D. Ray Award for Best Clinical Paper.

 

4. In September 2013, LDR announced its proposal for an IPO, and this week the company revealed its plans to raise $75 million by offering 5 million shares for $14 to $16 each. It attributed its Q3 2013 loss in part to $4.7 million in noncash expenses for the revaluation of warrants leading up to the IPO.


5. LDR was founded in 2000 by partners Christophe Lavigne, Hervé Dinville and Patrick Richard in Troyes, France. The management team in the U.S. includes CEO Christophe Lavigne, COO James Burrows and CFO Bob McNamara.

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