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Fractyl Breaks the Medical Device IPO Drought with New Offering
The Lexington, MA-based company is seeking to raise $110 million through the IPO.
February 2, 2024
1 Min Read
Image Credit: hanibaram via iStock/Getty Images
Never say never concerning medical device companies taking the public route. Fractyl Health, a company that is focused on treating type 2 diabetes and obesity, said it is raising $110 in an IPO.
The pricing of its initial public offering of 7,333,333 shares of common stock at a public offering price of $15 per share. The offering is expected to close on February 6th and the company is trading on the Nasdaq Global Market under the ticker symbol GUTS.
The move to go public comes on the heels of the Lexington, MA-based company winning FDA approval for a second pivotal study of its Revita DMR system. The company won breakthrough device designation for the technology in April of 2023.
Fractyl’s Revita DMR, is a therapy poised to reduce insulin dependence in type 2 diabetes patients. Revita uses thermal ablation to ablate a portion of the duodenum mucosa, which executives believe can improve glucose control in patients struggling to manage the disease.
Why is this IPO so important?
IPOs took a back seat to Special Purpose Acquisition Corporation (SPAC) mergers. However, the SPAC path, which was smooth as silk in 2021 became rocky in 2022. Many companies either scaled back SPAC ambitions or scrapped plans altogether.
Fractyl’s move could be a sign that confidence in traveling the IPO route is returning.
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