The KICVentures Group sees this merger as necessary to increase the efficiency in the outpatient ambulatory surgery center market for doctors who treat degenerative spine disease such as spinal stenosis and sacroiliac disease. KICVentures Group is the investment holding company with majority ownership in both Inspan LLC and Sacrix LLC leading to a swift decision on the merger.
MALDEN, Mass., Aug.1, 2022 /PRNewswire-PRWeb/ -- The KICVentures Group sees this merger as necessary to increase the efficiency in the outpatient ambulatory surgery center market for doctors who treat degenerative spine disease such as spinal stenosis and sacroiliac disease. KICVentures Group is the investment holding company with majority ownership in both Inspan LLC and Sacrix LLC leading to a swift decision on the merger.
Inspan LLC is focused on training doctors on treating degenerative spinal stenosis and fusing the spine without interbody cages and pedicle screws. Approximately 85% of the population will experience back pain in their lives and spinal stenosis is the most common disease affecting the degenerative spine causing back pain. Sacrix LLC is focused on training doctors on its new percutaneous lateral-oblique sacroiliac joint fusion technique that it invented. Over 22% of all back pain sufferers have pain originating from their sacroiliac joints. It is estimated that 43% of all patients who were treated with lumbar spinal fusions will develop adjacent segment stresses on their sacroiliac joints and develop pain needing treatment.
Inspan LLC has generated over $23 million in revenues from its main product line, the Inspan interspinous-interlaminar fixation devices which have a strong 10+ year clinical track record. The Inspan Slim device is designed to better fit at L5-S1 and the Inspan Vega device is designed with more robust features plus holes in the footplate for stronger fixation such as in heavy patients and for the unstable spine such as for spondylolisthesis. In 2019, Inspan LLC expanded its customer base beyond orthopedic spine surgeons and neurosurgeons to add interventional pain management doctors primarily anesthesia pain and physical medicine, and rehabilitation doctors who operate in outpatient ambulatory surgery centers. Also in 2019, Sacrix LLC expanded its customer base exactly as Inspan did and so the same doctors were being trained on both Inspan and Sacrix as a platform for outpatient surgery. Both Inspan and Sacrix improved the efficiency of their technique and reduced the number of steps and instruments to align with the outpatient setting and to make it easier for pain doctors. Both companies are owned by the KICVentures Group and so it was seamless to merge into one company Insrix LLC.
The immediate goal of the new company, Insrix LLC is to hire a Chief Executive Officer (CEO) with experience in public markets to lead and build a new executive and sales team to grow the revenues and prepare the company for an exit. "Inspan and Sacrix have grown recurring revenues and adoption year over year since 2019 to the same customers. The time is appropriate to combine the two and bring in experience executive leadership that can raise capital and scale the company quickly" says KICVentures Co-Founder and CFO Aditya Humad. The combined entity, Insrix LLC, is expected to have greater impact starting 2023 when it is expected that Sacroiliac joint companies that place a wedge inside the joint posteriorly, will see a new Category III T-code being assigned which will negatively affect insurance reimbursement for posterior wedges. Inspan is also expecting to see more doctors treating spinal stenosis in the outpatient ASC. "Having both companies together provide doctors with complementary companies to more efficiently support outpatient spine surgery" says Professor Dr. Kingsley R Chin, a board-certified orthopedic spine surgeon.
The merger is effective July 1st, 2022, and will continue proceeding with the integration process.
About INSPAN, LLC
Inspan LLC is privately owned by the KICVentures Group and is focused on advancing the platform of patented interspinous interlaminar fixation technology. The Inspan device has a proven ten-year track record with thousands implanted since FDA clearance in 2010. There are no documented device-related failures or spinous process fractures that have plagued other competitive ISP devices.
About SACRIX LLC
Sacrix LLC is a KICVentures Group portfolio company focused on revolutionary percutaneous fluoroscopic lateral-oblique sacroiliac joint fusion technologies for the treatment of sacroiliac dysfunction and sacroiliitis. Sacrix developed its patented Sacrofuse threaded implant to be inserted percutaneously and received FDA clearance in 2015. The Gen1 Sacrofuse implant was compared head-to-head with market leader SI bone (SIBN) and found to have a 400% increase in pull-out strength. Sacrix has trained over 165 interventional pain physicians to perform its revolutionary percutaneous lateral-oblique sacroiliac joint fusion technique safely and effectively through a 1.5 cm incision minimally invasively in outpatient ambulatory surgery centers.
About KICVentures Group
Founded in 2000 makes us the most experienced healthcare investment holding company with the largest portfolio of medical device technologies focused on solutions for less invasive outpatient spine surgery. Our investment strategy is to acquire or invent disruptive technologies using our own capital or partner with private individual investors. This allows us the freedom to make quick and nimble decisions such as when we acquired AxioMed Viscoelastic Disc Technologies while other firms invested in ball-and-socket articulating spacers.
Aditya Humad, KICVentures Group, 267-342-3968, [email protected]
SOURCE KICVentures Group