Apollo Endosrugery Inc. (NASDAQ: APEN) saw its shares slide on Thursday after it was announced that the company would have a secondary offering. The firm filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) on Wednesday. It did not disclose any pricing details on the offering but shares most recently closed at $6.87.
The underwriters for the offering are Craig-Hallum Capital Group and Roth Capital Partners.
This is a medical technology company primarily focused on the design, development and commercialization of innovative medical devices that can be used for the treatment of obesity.
Apollo is one of the market share leaders in less invasive devices that treat obesity. Its products are used to provide interventional therapy by general and bariatric surgeons and gastroenterologists in a variety of settings to patients who suffer from obesity and many co-morbidities associated with obesity.
The company described its focus in the filing as follows:
Our strategic focus and the majority of our future revenue growth is expected to come from our Endo-bariatric product portfolio, which consists of the Orbera and OverStitch systems. In the past two years, the majority of our product revenues has come from the Apollo surgical product portfolio, which consists of the Lap-Band System and related laparoscopic accessories. Revenues from the surgical product portfolio had been decreasing over the past several years prior to our acquisition of those products and revenues have continued to decline since.
Apollo intends to use the net proceeds from this offering for working capital and general corporate purposes.
Shares of Apollo were last seen down about 5% at $6.51 on Thursday, with a consensus analyst price target of $11.00 and a 52-week range of $4.96 to $22.50.