Khazanah Nasional Berhad (“Khazanah”), is pleased to announce that it has invested approximately USD25 million (RM90 million) in Small Bone Innovations, Inc. (“SBi”), a leading US-based specialized orthopedics company.
The investment was made as part of a USD108 million (RM388 million) Series D financing round undertaken by SBi, together with other investors including Goldman Sachs Group, Inc.; integrated venture capital company, Malaysian Technology Development Corporation Sdn. Bhd. (“MTDC”); The Family Office of Bahrain and Trevi Health Ventures.
SBi was founded in 2004 as one of the earliest companies in the orthopedics industry to focus exclusively on technologies and treatments for small bones and joints. It currently offers a broad clinically proven portfolio of products to treat these anatomies manufactured through its facilities in the US, France and Germany. Its latest product, Scandinavian Total Ankle Replacement System (“STAR Ankle”) recently obtained the approval of the US Food and Drug Administration.
With Khazanah’s investment, SBi has decided to set up its Asia Pacific hub in Kuala Lumpur to undertake activities such as biomaterial research, product development, surgeon education and distribution in the region. It is also currently exploring the possibility of establishing an Asia Pacific manufacturing base in Malaysia for its products.
SBi’s presence in Malaysia is expected to create additional skilled knowledge workers in the areas of new technology and product development. Malaysia’s nascent medical devices industry will be enriched by the introduction of SBi. The human capital development of the local orthopedics ecology in particular, will benefit from potential collaborations between SBi and the local researchers, entrepreneurs and surgeons.
The orthopedics industry builds on the precision engineering technology platform of electrical and electronic manufacturing and Malaysia’s presence in the global supply chain. The SBi investment takes industrial development in the right direction and synergizes with the existing local capabilities. Khazanah believe this strategy of developing the nascent local industry through international collaborations will achieve the desired catalyzing effect.
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