Orbimed advisors sells Xtant Medical stock for $30.7 million

Published 15/04/2025, 00:16
Orbimed advisors sells Xtant Medical stock for $30.7 million

In a recent transaction, OrbiMed Advisors LLC, a major stakeholder in Xtant Medical (TASE:BLWV) Holdings, Inc. (NYSE:XTNT), divested a substantial portion of its holdings in the company. The sale, executed on April 10, 2025, involved a total of 73,114,592 shares of common stock at a price of $0.42 per share, amounting to a total transaction value of approximately $30.7 million. According to InvestingPro data, this transaction comes as the stock has declined over 52% in the past year, though current analysis suggests the stock may be undervalued.

The shares were sold in two separate transactions. The first involved 56,004,974 shares, while the second included 17,109,618 shares. Following these transactions, OrbiMed Advisors no longer holds any shares in Xtant Medical. The sales were conducted indirectly, with the securities held by ROS Acquisition Offshore LP and OrbiMed Royalty Opportunities II, LP. The company, with a market capitalization of $58.4 million, maintains strong liquidity with a current ratio of 2.35, though it faces profitability challenges with negative EBITDA of $7.85 million in the last twelve months.

OrbiMed Advisors, along with OrbiMed ROF II LLC, managed the investment and voting power through a committee comprising Carl L. Gordon, Sven H. Borho, and W. Carter Neild. Both entities have disclaimed beneficial ownership of the securities, except to the extent of their pecuniary interest. With analyst targets ranging from $1.50 to $2.00 per share, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Xtant Medical Holdings, Inc. reported its fourth-quarter 2024 financial results, which included a 12% year-over-year increase in revenue, reaching $31.5 million. Despite the revenue growth, the company posted a loss per share of $0.02, slightly missing forecasts by $0.01. The gross margin declined to 50.8% from 61% the previous year, influenced by inventory charges and product optimization efforts. Xtant Medical’s adjusted EBITDA for the quarter was a positive $438,000, marking an improvement from the prior year’s negative figure.

Furthermore, BTIG analysts adjusted their outlook on Xtant Medical by lowering the stock price target from $3.00 to $2.00, while maintaining a Buy rating, following the company’s financial performance. The firm has projected 2025 revenues between $126 million and $130 million, indicating a growth rate of 7% to 11% year-over-year, though this is below consensus estimates. Additionally, Xtant Medical has undergone a significant stock transaction in which OrbiMed Advisors sold approximately 73.1 million shares to Nantahala Capital Management and other investors. This transaction makes Nantahala the largest shareholder with a 49.1% stake.

Xtant Medical also amended its credit agreements with MidCap Financial Trust to reflect the new ownership structure, ensuring that Nantahala’s increased stake does not trigger a change in control. The company has committed to filing a shelf resale registration statement with the SEC, aiming for its effectiveness within 60 to 90 days. These developments highlight Xtant Medical’s strategic focus on restructuring and financial growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.