Founded in 2007, Silk Road developed and commercialized a cardiac stent that now generates over $35 million in revenue annually, up over 160% from the prior year, and margins close to 70%. It’s foreseeable that such rapid growth will continue for some time given the massive market size of approximately 4.3 million individuals in the U.S. alone suffering from carotid artery disease.
Cardiovascular disease is the most common cause of death globally and in 2013 it caused over 17 million deaths. Meanwhile, the embolic protection devices market is estimated to exceed $1.8 billion by 2024.
The Company’s stent provides an effective treatment to reduce the probability of a stroke; it is a TCAR-based device (TransCarotid Artery Revascularization). In the medical community, the widely known damage a stroke can cause on the brain, has led to many seeking a more effective means to prevent strokes form occurring in highly susceptible individuals.
Erica Rogers leads as CEO, she joined the Company in 2012 and was previously CEO of Medicines360, a women-focused non-profit pharmaceutical firm.
Silk Road is backed by blue chip investors including Warburg Pincus, Norwest Venture Partners, The Vertical Group and affiliates of Janus. To date, over $100 million has been invested in the Company, which received its CE Mark approval in Europe and has been growing rapidly in the U.S.
The IPO is expected to bring in proceeds of $75 million further fueling sales efforts and international expansion. Currently, the Company has an in-house direct sales force of 27 reps and 41 clinical support specialists to physicians and physician groups. Silk Road is pursuing regulatory clearances in China and Japan.
Major competitive vendors that provide stenting solutions include:
• Abbott Laboratories
• Cardinal Health
• Boston Scientific
• LeMaitre Vascular
• Gore Medical
• Innovative Cardiovascular Solutions
• Edwards Lifesciences
• Transverse Medical