Sientra, an early-stage producer of silicone breast implants,
filed on Friday with the SEC to raise up to $86 million in an
initial public offering.
Sientra received FDA approval in 2012 for its silicone gel breast
products that use proprietary branded TRUE texture. Its portfolio
of breast implants are offered in over 120 variations to plastic
surgeons. The company estimates that the US market for breast
implants and tissue expanders was $600 million in 2013. Sientra
notes that its industry is dominated by two major breast implant
producers, Mentor (a division of Johnson & Johnson) and
Allergan. In 2012, Mentor filed a lawsuit alleging that
employees breached confidentiality and non-compete agreements,
which were later dismissed in court.
Primary shareholders include OrbiMed, Clarus Lifesciences,
Abingworth Bioventures, Goldman Sachs, Teachers Insurance and
Annuity Association and founder and CEO Hani Zeini.
Revenue increased 22% to $22 million for the six months ended June
30, 2014 as plastic surgeons became more familiar with its
products. Its gross margin fell 100 bps to 75% due to higher
manufacturing costs and targeted pricing programs. Sientra's loss
from operations narrowed to about $3 million from $9 million
because of litigation expenses in the 1H13 related to Mentor
litigation. The company has taken debt of $25 million as of June
30, up from $15 million at the end of December.
The Santa Barbara, CA-based company, which was founded in 2003 and
booked $39 million in sales for the 12 months ended June 30, 2014,
plans to list on the NYSE under the symbol SIEN. Sientra initially
filed confidentially on July 18, 2014. Piper Jaffray and Stifel are
the joint bookrunners on the deal. No pricing terms were disclosed.
The breast IPO of 2014: breast implant maker
Sientra files for an $86 million IPO
originally appeared on IPO investment manager Renaissance Capital's
web site renaissancecapital.com.
The information and opinions expressed herein were prepared by
Renaissance Capital's research analysts and do not constitute an
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, may have investments in securities of companies mentioned.