Carlsmed IPO prices at $15 per share middle of range: terms

Carlsmed IPO prices at $15 per share middle of range: terms

Carlsmed, a developer of artificial intelligence-enabled spine surgery solutions, has set its initial public offering (IPO) price range, aiming to raise up to $103.3 million. The company, which will list on the Nasdaq under the ticker CARL, plans to offer 6.7 million shares of common stock at an expected range of $14 to $16 per share, with an underwriters' option to purchase more than 1 million additional shares [1].

Carlsmed's platform leverages AI and 3D printing to create personalized interbody implants, addressing the limitations of traditional spine fusion procedures. The company's products compete with established players like Medtronic, Johnson & Johnson, and Globus Medical, but have shown promising results in clinical trials. For instance, an interim analysis of 67 adult spinal deformity patients found a revision surgery rate of 1.5% after a mean follow-up of 14.7 months, compared to a 8.7% rate for stock implants [1].

The company's revenue has been growing rapidly, with sales increasing by almost 100% in 2024 and on track to rise again in 2025. Carlsmed's IPO filing reveals some challenges, including a net loss of $24.2 million in 2024 and reliance on a limited number of contract manufacturing organizations, which have impacted margins. However, the company expects to improve operational processes and reduce expedite fees over time [1].

The IPO comes amidst an uptick in medtech IPO activity, with some analysts predicting a backlog of companies waiting for favorable conditions to list. The success or failure of companies like Carlsmed could inform whether the IPO window opens or closes [1].

References:
[1] https://www.medtechdive.com/news/carlsmed-seeks-ipo-spine/753418/