A New $100M Device IPO in the Offing

The initial public offering window has been cracked open ever so slightly by device and diagnostc companies over the last couple of years.

Data from Jonathan Norris, managing director, healthcare practice with Silicon Valley Bank shows that the number of device IPOS of venture backed startups that raised at least $25 million jumped to 10 in 2014. That's a five-fold increase from 2013.

This year is shaping up to be pretty decent as well 7 IPOs in the first six months of the year, according to Norris. And now a California company that makes devices to treat ischemic stroke among other things is getting ready for a $101 million initial public offering.

Penumbra, based in Alameda, is hoping to raise $101 million by offering 3.8 million shares priced between $25 and $28. Taking the mid point of that proposed price range, Penumbra would have a a fully diluted market value of $847 million, according to IPO research company Renaissance Capital.

Penumbra was founded in 2004 and has a global workforce of about 1,000, the company's regulatory filing shows. Last year the company had revenue of $125.5 million, a 41.3% increase over revenue the year before. However, the company swung to a loss of $833,000 in 2014, from a profit of $887,000 in 2013

The filing also shows that executives believe that the neuro and peripheral vascular market in the United States and Europe collectively was $1.3 billion in 2014, which represents a significant opportunity. 

The company's products can be divided into neuro products that are mainly catheter-based technologies used to treat brain vascular disorders or diseases, and peripheral products that treats vascular diseases in areas excluding the brain and the heart.

In May the company received FDA clearance for its ACE64 thrombectomy technology that is able to remove clots quickly and achieves high revascularization rates in stroke patients. 

The company is led by Adam Elsesser who is also the company's cofounder. Previously, Elsesser was president and CEO of Smart Therapeutics, which developed the first intra-cerebral stent before it was acquired by Boston Scientific, according to Penumbra's website.

Arundhati Parmar is senior editor at MD+DI. Reach her at [email protected] and on Twitter @aparmarbb