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Small Bone Innovations raises USD144m

Small Bone Innovations, an orthopedics company focused on technologies and treatments for the small bones and joints, has sold a total of USD108m of series D preferred stock in a series

Small Bone Innovations, an orthopedics company focused on technologies and treatments for the small bones and joints, has sold a total of USD108m of series D preferred stock in a series of private equity financings.

The most recent of these financings closed in April 2009. The series D financing is believed to be one of the largest ever private equity capital investments in an orthopedics company.

It included substantial investments from Goldman Sachs, Khazanah Nasional Berhad, the investment firm of the Government of Malaysia, Malaysian Technology Development, and The Family Office of Bahrain.

The series D financing also included investments from existing investors Trevi Health Ventures, NGN Capital, 3i Group, and TGap Ventures.

Anthony G. Viscogliosi, chairman and chief executive, says: ‘In view of the extremely difficult conditions in the global capital markets during the past 18 months, the scope and quality of this investment round represent both a vote of confidence in our business model and a recognition of the small bone & joint market as the fastest growing sector in the orthopedics market. The size of the investment in SBi is significant in view of the 51 percent decline this year in medical device investing by venture capital firms – according to VentureSource (a DowJones database).’

In addition to the series D financing round, SBi completed in 2008 its series C preferred stock financing, raising a total of USD36m. This financing was led by Viscogliosi and included new investor Trevi Health Ventures, and follow-on investments by NGN Capital, 3i, TGap Ventures and Axiom Venture Partners.

The proceeds from the series C and series D financings were used in part to complete the acquisition of the Scandinavian Total Ankle Replacement system from Waldemar Link of Hamburg, Germany, to fund operations, to support the launch of the Star Ankle in the US and to retire a USD20m credit facility, arranged in 2007 by Fortress Investment Group.

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