Biotech Values

[DewDiligence]

An IPO with a likely tail wind:

[The shares have not yet opened for trading. If this stock trades down during the next few months and turns into another “busted” IPO, it might be an attractive opportunity. Cadpdvr: do you know anything about this business segment?]

http://biz.yahoo.com/rf/040512/health_nuvasive_ipo_2.html

>>
NuVasive IPO priced at low end of range

Wednesday May 12, 6:03 pm ET

NEW YORK, May 12 (Reuters) - Medical device maker NuVasive Inc. priced its initial public offering at the low end of its estimated range, the underwriter said on Wednesday.

The company, which focuses on treatments for spine disorders, priced its 6.5 million share offering at $11 per share, the underwriter said. It originally filed to offer the shares at an estimated price range of $11 to $13 per share.

Medical-related public offerings have had mixed response from the market this year. As of last week, half of the 16 offerings for the year priced below the low end of the original estimated range, according to Thomson Financial.

NuVasive, incorporated in 1997, focuses on designing, developing and marketing spine surgery products such as implants and a system used to help surgeons avoid critical nerves during spine surgery, according to its regulatory filing.

The company has poured money into research and development, incurring losses since its inception.

But it has the backing of well-known venture capital firm Kleiner Perkins Caufield & Byers -- which also invested in Internet search company Google -- and the investment unit of Johnson & Johnson (NYSE:JNJ).

It is also in a growing market. Analysts estimate that sales of spinal-related hardware, surgical equipment and devices to support them are growing at a rate of about 20 percent a year. NuVasive said the U.S. market for lumbar and cervical spine fusion, its core business focus, could grow to more than $2.9 billion by 2005.

Bank of America Securities and Lehman Brothers are the lead underwriters handling the offering, according to regulatory filings.

The San Diego-based has applied to list its shares on Nasdaq under the symbol "NUVA." [Not to be confused with NUVO for Nuvelo.]
<<