Paragon 28’s share price ballooned on Friday as the US medical implants and devices maker went public on the New York Stock Exchange.
Paragon’s share price closed up 16.94%, rising above $18 (£13.08), after the Englewood, Colorado-based company set its offering price at $16 per share. The company raised $125m, according to a news release.
All shares were offered and sold by Paragon with Bank of America and Piper Sandler acting as leading bookrunners. JMP and Needham and Company acted as co-managers.
Equipment deals with podiatric issues
Paragon’s surgical implants and devices are used in foot and ankle procedures that deal with podiatric issues ranging from fractures to hammertoe. The company reported modest growth figures, with total revenue rising 4.4% to $111m (£81.7m) and net revenue up 13% from 2019 to 2020, in its IPO registration statement.
Over a five-year span, Paragon experienced a compound annual growth rate of 42%. While the company produced a net loss, it reduced its losses year-over-year for the sixth-month period ending 30 June.
Bunions could spell 10% annual growth
Paragon projects that overall compound annual growth rates for their foot and ankle will be around 7% between 2021 and 2025. Devices aimed at treating common ailments like bunions offer the greatest potential growth, at around 10%. If growth expectations are met, the industry would expand to $5.6bn from $4.3bn and could potentially become the fastest-growing market within orthopaedics, the company stated.
Proceeds from the IPO will go to working capital and general corporate purposes, as well as potential but as-yet-undefined investments in technology. Paragon says that by selling only foot and ankle products, it has an advantage over competitors which operate within a broader space in the orthotics market.
Paragon is headed by co-founder Albert DaCosta, who serves as chair, president and CEO. He has 18 years of experience in the foot and ankle sector.
Prior to taking on Paragon’s president and CEO roles in 2012, DaCosta served as a distributor with both Pioneer Surgical and Biomet Sports Medicine from 2009 to 2010.