Kyphon, located in Sunnyvale, California, develops, manufactures and markets minimally invasive medical devices, which employ a proprietary balloon technology, to help surgeons repair spine fractures caused by osteoporosis, cancer and trauma. Approximately 700,000 of these fractures, also known as vertebral compression fractures ("VCF"), are diagnosed each year in the U.S. Left untreated, they can result in significant pain, deformity and reduced respiratory function, as well as shortened life expectancy. Kyphon's spine fracture repair procedure, kyphoplasty, utilizes the company's KyphX instruments and involves the minimally invasive deployment of two balloons within a fractured vertebra to create a controlled cavity, after which the surgeon fills the cavity with Kyphon's proprietary bone filler material, KyphX HV-R, to stabilize the fractured area. Currently available treatment alternatives are either highly invasive or are simply pain-management therapies that do not repair the fracture or correct the spinal deformity. In 1996, Warburg Pincus provided seed capital to Kyphon's founders and led two subsequent financings and participated in a third. In May 2000, Kyphon commenced full commercial launch of its spine instruments. Since that time, the company has trained over 4,500 surgeons worldwide and its instruments have been used in over 100,000 procedures. In May 2002, the company completed its initial public offering, generating proceeds of $100 million. Warburg Pincus distributed its holding in Kyphon in 2005.

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