By Jennifer Chiou
New York, Dec. 6 - SpineVision Inc. said it will use 80% of a new $16 million financing to spin off its new technologies business unit to creating new wholly owned subsidiary FlexSpine.
Bio*One Capital led investors in the fund raising, which also included Sofinnova Partners, HBM Ventures, Innoven Private Equity and HealthCap.
FlexSpine, which will have headquarters in Singapore, will receive working capital, product expertise and human resources from SpineVision.
The spin-off will further develop a hybrid dynamic stabilization system and interspinous spacer, both expected to be marketed in Europe in 2006, as well as prosthetic discs.
"We chose Singapore to be FlexSpine's headquarters because of its pro-business environment, its commitment to the biomedical sciences industry, a ready pool of engineers and an array of business incentives that ultimately lowers the cost of business," SpineVision chief executive officer Gerard Vanacker said in a news release.
"Furthermore, it is expected that FlexSpine will serve as the principal distributor for SpineVision's fusion products in Asia Pacific, a high-growth market in which SpineVision's sales efforts have not previously been emphasized."
According to the release, the U.S. market for non-fusion spinal devices, the focus of FlexSpine, was about $75 million in 2004 and is expected to grow to nearly $11 billion by 2010.
Based in Atlanta, SpineVision is a spinal technology company focused on implants and instrumentation for spinal surgery.
| Issuer: | SpineVision Inc.
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| Issue: | Stock
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| Amount: | $16 million
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| Investors: | Bio*One Capital (lead), Sofinnova Partners, HBM Ventures, Innoven Private Equity, HealthCap
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| Announcement date: | Dec. 6
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