Kyphon was a great startup that created a brand new treatment category and grew it exponentially. Look at these sales numbers that Kyphon produced before the 2007 Medtronic acquisition of $3.9B.
1996 - First funding
1998 - FDA approves balloon kyphoplasty, but not the bone cement filler.
2000 – $6M sales
2001 – $36M sales
2002 – $76M
2003 – $131M
2004 - $306M (FDA approves the bone cement filler)
2005 - $408M
2007 - acquired for $3.9B
Message: If you want a crazy high valuation, you have to generate an exponential adoption rate.
The detailed history of Kyphon from inception to exit.
Kyphon (Encyclopedia.com) is a medical device company focused on a minimally invasive treatment of spinal fractures it calls balloon kyphoplasty, the name drawn from the Greek word kyphos, or “bent.” It is essentially an improved form of vertebroplasty, a procedure in which cement is injected into the fissures of collapsed vertebra to provide reinforcement and pain relief, although the vertebra remain collapsed. Carried out under local or general anesthetic, kyphoplasty relies on small balloons, about the size of a thumb, introduced into collapsed vertebra of a patient through small ...
