Healthcare Focused Long-term Investors Support Strategic Vision
Accelerating Shift to Higher-Margin Orthobiologics Supported by New Product Launches
Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal, orthopedic and woundcare disorders, today announced the completion of a secondary private sale of 73.1 million shares of Xtant common stock held by funds affiliated with OrbiMed Advisors LLC (“OrbiMed”) to several existing and new stockholders, led by Nantahala Capital Management LLC (“Nantahala”).
Sean Browne, President and CEO of Xtant Medical, stated, “We want to thank OrbiMed for its partnership and investment in Xtant over the years.” As a result of the sale of OrbiMed’s ownership position in Xtant, the investor rights agreement between Xtant and OrbiMed was terminated, which will provide Xtant greater strategic and operational flexibility going forward.
Mr. Browne continued, “We are pleased that this transaction has resulted in significant ownership by long-term, healthcare-focused investors who are aligned with our vision and fully committed to maximizing stockholder value. As we look ahead, we remain firmly focused on prioritizing profitability and achieving self-sustainability as the foundation of our long-term growth strategy. A key driver of this will be a continued shift toward our higher-margin orthobiologics and leveraging the capabilities of our Montana manufacturing facility to drive operational cost efficiencies. We have several new product launches planned in the near term that will further expand our offerings beyond spine, which we believe will help accelerate growth in 2025 and beyond.”
Dan Mack, Managing Member of Nantahala, commented, “We are pleased to partner with Xtant at such an exciting moment. The company’s innovative biologics and implant solutions address a clear and growing need in the healthcare space, particularly as demand increases for regenerative and cost-effective surgical solutions. We fully support Xtant’s increased strategic focus on orthobiologics, which we believe will maximize stockholder value.”
While Xtant was not a party to the securities purchase agreement and did not receive any proceeds from the transaction, Xtant has agreed to register the resale of the shares purchased by the investors with the Securities and Exchange Commission (“SEC”) on a Form S-1 registration statement to facilitate the transaction and assist OrbiMed in obtaining liquidity for its Xtant investment.
Preliminary Revenue for Q1 2025
The company also announced that it expects to report revenue for the first quarter of 2025 ranging between $32.8 million and $33.1 million, representing 18% to 19% growth compared to first quarter 2024 revenue. The strong growth experienced in the first quarter of 2025 was driven by orthobiologics and licensing revenue.
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