Vapotherm has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. The company intends to price its 4.0 million shares in the range of $14 to $16 a piece, with an overallotment option for an additional 600,000 shares. At the maximum price, the entire offering is valued up to $73.6 million. The company intends to list its shares on the New York Stock Exchange under the symbol VAPO.
The underwriters for the offering are William Blair, Merrill Lynch, Canaccord Genuity and BTIG.
This is a global medical technology company focused on the development and commercialization of its proprietary Hi-VNI Technology products that are used to treat patients of all ages suffering from respiratory distress.
The Hi-VNI Technology delivers noninvasive ventilatory support by providing heated, humidified and oxygenated air at a high velocity to patients through a comfortable small-bore nasal interface. The Precision Flow systems, which use Hi-VNI Technology, are clinically validated alternatives to, and address many limitations of, the current standard of care for the treatment of respiratory distress in a hospital setting.
As of September 30, 2018, more than 1.5 million patients have been treated with the Precision Flow systems, and the company has a global installed base of over 13,000 capital units.
The company described its finances in the filing as follows:
Our revenue grew from $30.1 million for the year ended December 31, 2016 to $35.6 million for the year ended December 31, 2017, and from $25.2 million for the nine months ended September 30, 2017 to $30.7 million for the nine months ended September 30, 2018. Revenue from single-use disposables represented approximately 67.3% and 66.7% of our total revenue for the year ended December 31, 2017 and for the nine months ended September 30, 2018, respectively. During this time, our international revenue has also grown, representing 21.5% of our total revenue in 2017 and 21.9% for the nine months ended September 30, 2018. For the years ended December 31, 2016 and 2017, we incurred net losses of $23.1 million and $31.0 million, respectively, and for the nine months ended September 30, 2017 and 2018, we incurred net losses of $22.0 million and $29.6 million, respectively.
Vapotherm intends to use the net proceeds from the offering to hire additional sales and marketing personnel and fund product development and research, and for working capital and general corporate purposes.