| This breakthrough medical device could disrupt a $14B industry... And you can invest in the company that makes it, while it's still a private company!
For investors looking to get in on the next generation of medical technology, Kleiner Device Labs (KDL) could revolutionize a little-known $14 billion spinal fusion device industry...
Potentially save Americans more than $434 billion per year in costs associated with back pain... And give investors the chance to be part of one of the biggest breakthroughs in medicine no one is talking about right now. Their first generation device – the KG1 – has already seen spinal fusion success rates increase from 75% to 92%. Their newest product – the KG2 – could take the success rate to the next level... making the surgeries faster, cheaper, easier, and even safer. And on Sept 22nd 2021, management announced the KG2 has now been granted full FDA 510(k) clearance! This announcement marks an important milestone towards successfully commercializing the product and marching towards a potential exit! For example... - Vertiflex – a company that sells minimally invasive devices to treat patients with moderate degenerative lumbar spinal stenosis – received 510(k) Clearance for their Superion® InterSpinous Spacer on May 27th, 2015.
On May 9th, 2019 – four years later – Boston Scientific (NYSE: BSX) announced plans to acquire the company for $465m in cash, plus additional payments on commercial milestones for the following three years. The valuation was based on an expected $60 million in sales in 2019... from one product... at a 7.75x multiple at the time of acquisition! For investors who invested in their 2006 round at a $39m valuation, this represents a potential 11.9x return on invested capital (assuming no dilution). Here's another example... - Ellipse Technologies – a MedTech company focused on implantable technologies for the treatment of a broad spectrum of spine and orthopedic applications – received 510(k) clearance on August 24, 2011
The technology is called the PRECICE® Intramedullary Limb Lengthening System. On February 4th, 2014, the company received 510(k) clearance for their next generation PRECICE® 2 Intramedullary Limb Lengthening System. On September 30th, 2014, the company also received 510(k) for their MAGEC (MAGnetic Expansion Control) Spinal Bracing and Distraction System. Then, on January 5th, 2016, NuVasive, Inc (NASDAQ: NUVA) bought the company for $380 million in cash, plus up to another $30m in additional earnouts (for $410m total)! This valuation was based on approximately $40 million in sales in 2015... from two products... at an estimated 10x multiple at the time of acquisition! For investors who invested in their 2011 round at a $15m valuation, this represents a potential 27x return on invested capital in ~5 years (assuming no dilution). - Of course, while there is no guarantee that Kleiner Device Labs will successfully commercialize their product or be acquired, the market comps paint a compelling picture for what is possible in the medical device market.
According to iData Research, it's estimated that surgeons perform 352,000 interbody fusions – which is what the KG2 would fall under – each year. The KG2 will cost ~$3,000 for a single-use device. According to KDL management... if an average surgeon performs six surgeries per month using the KG2, that would mean 72 total surgeries per year that potentially generate $216,000 in annual revenue. If we assume a 7x - 10x multiple, this means every single surgeon they acquire could potentially add $1.5m to $2.1m in total valuation! This means if Kleiner Device Labs can successfully onboard 250 surgeons, who perform a combined 18,000 procedures per year... The company could potentially generate an estimated $54 million in annual revenue and have a potential valuation of $378m - $540m! Currently, they have 10 surgeons already onboard for the alpha round of testing. However, based on early interest from surgeons regarding the KG2, KDL management is projecting they could potentially reach this sales target by the end of 2025. This new technology is also protected by a fortress of 23 U.S. patents – so competitors can't just swoop in and try to copy it. Not to mention, the KDL team has more follow-on products currently in development. Today, you have the opportunity to get in on this private deal (and it's open to every US citizen over the age of 18!) To learn more about how to invest in this private market opportunity, please go get the full details here.
Your early-stage experts, 
Equifund.com
PS. Making an investment is easy. All you need to do is open a free account on Equifund – a FINRA-regulated investment portal. This opportunity is open to both accredited and non-accredited investors. As long as you have a US tax identification number and you're older than 18, you can invest in this deal. Best of all, you can make your investment any time, day or night. To get started, all you need to do is go to this page right here. 1013 Centre Rd, Suite 403-b
Wilmington, DE 19805
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