RALEIGH, N.C.(wraltechwire.com) —Medical device company Baxano Surgical’s (NASDAQ: BAXS) net loss widened to $8.5 million in a second quarter that saw the completion of a merger that combined spinal products companies on both coasts.Raleigh-based TranS1 announced earlier this year it would acquire California-based Baxano in a stock deal valued at more than $23 million. TranS1 said the merger would create a company with a broader portfolio of spinal products. When the deal closed in May, TranS1 took the Baxano name.Second quarter revenue for the newly-combined Baxano was $3.9 million, a 12 .1 percent increase compared to the same period in 2012. Revenue from the Baxano products that came to the new company in the acquisition totaled just $800,000 in the quarter.Excluding one-time items, Baxano reported that its net loss in the second quarter was $6.9 million. One-time items in the quarter included $1.6 million in merger-related expenses and $700,000 in legal expenses related to a federal investigation dating to 2011. As of June 30, Baxano had $19.6 million in cash and cash equivalents.
“This quarter, we created the new Baxano Surgical and now have a suite of spinal devices targeting the minimally invasive spine market, the most significant growth opportunity in spine,” Baxano Surgical President and CEO Ken Reali said in a statement.
About Baxano, Inc.
Baxano, Inc., based in San Jose, California, is a privately held company, which was founded in 2005 with the vision to create flexible tools to provide precision lumbar decompression from the “inside out.” These platform technologies will form the basis for future product offerings. Baxano’s mission is to develop innovative tools that restore spine function, preserve healthy tissue, and enable a better quality of life for patients. Along with its dedication to advanced technology development, Baxano is focused on providing exceptional value to patients, customers, investors, and employees.
Baxano Surgical reports $8.5M 2Q loss
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