Health and Healthcare

Tactile Systems Prepares for IPO

Chris Lange

Published: March 28, 2016 10:05 am

Last Updated: January 13, 2020 11:28 am

Tactile Systems Technology has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing. The company intends to list on the Nasdaq Global Market under the symbol TCMD.

The underwriters for the offering are Piper Jaffray, William Blair, Canaccord Genuity and BTIG.

This medical technology company develops and provides innovative medical devices for the treatment of chronic diseases at home. The company focuses on advancing the standard of care in treating chronic diseases in the home setting to improve patient outcomes and quality of life and help control rising health care expenditures.

Tactile Systems possesses a unique, scalable platform to deliver at-home health care solutions throughout the United States. This evolving care delivery model is recognized by policy makers and payers as a key for controlling rising health care expenditures. The initial area of therapeutic focus is vascular disease, with a goal of advancing the standard of care in treating lymphedema and chronic venous insufficiency.

The company’s proprietary Flexitouch System is an at-home solution for lymphedema patients. Its proprietary ACTitouch System is a home-based solution for chronic venous insufficiency patients that may be worn throughout the day. These products deliver cost-effective, clinically proven, long-term treatment of chronic diseases.

This company employs a direct-to-patient and -provider model, through which it obtains patient referrals from clinicians, manages insurance claims on behalf of patients and their clinicians, delivers solutions to patients and train them on the proper use of solutions in their homes.

In terms of its finances, Tactile Systems detailed in the filing:

For the year ended December 31, 2015, we generated revenues of $62.9 million and had net income of $1.4 million. Our revenues increased 32% during the year ended December 31, 2015 compared to the year ended December 31, 2014.

The company intends to use the net proceeds from this offering to expand sales, product development and reimbursement and clinical activities. The remainder will be used for working capital and general corporate purposes.