Menlo Park, Calif.
Went public 4/5/2000 at $14 apiece
Filing Range:4 mil. shares @ $13 to $15
Shares Outstanding:20.49 mil. shares
J.P. Morgan/U.S. Bancorp Piper Jaffray
(Data in $ millions)
Total Revenue $11.13 $31.37
Net Loss -11.34 -9.67
Oratec Interventions develops medical devices that use controlled thermal energy to treat spine and joint disorders. The company currently markets two minimally invasive systems, the SpineCATH IntraDiscal ElectroThermal Therapy, or IDET, system and the ElectroThermal Arthroscopy System. Oratec’s proprietary systems use heat to modify, cut or remove damaged or stretched soft tissue. The company markets its products to orthopedic surgeons, neurosurgeons and pain management specialists. The company’s SpineCATH IDET system offers a minimally invasive outpatient alternative to patients suffering from chronic low back pain caused by degenerative disc disease. The IDET system enables physicians to navigate to the location of damaged tissue within a spinal disc using a self-guiding single use catheter. Physicians can then apply heat directly to the disc wall, causing the tissue to contract and thicken. Following the IDET procedure, which costs about $8,000 to perform as compared to $45,000 for a spinal fusion, many patients have experienced significant pain reduction and improved overall quality of life, and have reduced or eliminated pain medication. The procedure does not require general anesthesia or extended hospitalization and does not subject the patient to the post-operative complications often associated with spine surgery. The IDET system was formally launched in October 1998, and ORATEC estimates that, as of Dec. 31, 1999, over 640 physicians had performed the IDET procedure on about 11,000 patients.
Net proceeds will be used for the expansion of sales, marketing and reimbursement activities, future development of product lines and to repay debt.
Venrock Associates, Pequot Capital Management Inc., Delphi Ventures, Manufacturers Life Insurance, Saratoga Ventures, Ferrari Partners