June 26, 2019
Conformis Makes Noise in the Orthopedics Industry with New Funding
The Billerica, MA-based company has secured about $33 million from Innovatus and East West Bank.
Conformis has been relatively quiet lately, but the custom-implant maker made quite a bit of noise announcing it had garnered funding. The Billerica, MA-based company said it had secured up to $30 million in debt financing from Innovatus Capital Partners and East West Bank.
The loans have a term of five years and are comprised of two parts. The first is a term loan with Innovatus of $20 million with an interest-only period of four years. The second is a revolver line of credit with East West Bank for up to $10 million based on the accounts receivable borrowing base.
The company has also secured $3 million in equity financing from Innovatus. Conformis will use the proceeds from the debt financing to pay off the $15 million term loan from Oxford Finance LLC and currently expects that the remainder will be used for general corporate purposes, including but not limited to funding its working capital needs.
“Conformis’ proprietary iFit Image-to-Implant technology for patient specific joint replacement implants has the potential to disrupt an $18 billion orthopedics industry by solving for the shortcomings of conventional ‘off-the-shelf’ total knee replacement procedures, where 1 in 5 patients are not satisfied with the results,” Claes Ekstrom, Managing Director at Innovatus, said in a release. “We are excited to support Conformis’ ongoing mission to achieve better patient outcomes and lower healthcare costs.”
Conformis uses itsiFit Image-to-Implant technology platform to develop, manufacture and sell joint replacement implants that are individually sized and shaped, or customized, to fit each patient's unique anatomy.
The company has been very measured with its moves. In August of 2018, Conformis said the first two total hip replacement surgeries using its 3D technology were performed at JFK Medical Center, Atlantis, FL. The Conformis Hip System includes specially made implants that match a patient’s specific measurements, as well as customized instrumentation that the surgeon uses to guide him or her during the procedure.