IPO FILING: Salient Surgical Technologies, Inc. (SLNT, MDT)

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Salient Surgical Technologies, Inc. has filed to come public via an initial public offering and has applied to trade on the NASDAQ under the ticker "SLNT."  The company lists that it will sell up to $86.25 million in securities for filing purposes.  Co-lead managers are listed as Bear Stearns and Piper Jaffray, and Wachovia Securities in listed as a co-manager.

This company offers what it refers to as clinical applications of Transcollation(tm) technology for the sealing of blood vessels and other collagen-based structures.  These are for medical procedures such as liver resection, spine surgery, total hip athroplasty, and total knee athroplasty. Transcollation technology has been used in over 165,000 surgical procedures to date. Its principal Transcollation product is called the Aquamantys System and it was launched commercially in March 2006, and it is comprised of single-use handheld devices and a radio frequency energy generator system.

Unlike many medical technology companies that have filed to come public, this one is now operational with at least some revenues. As of December 31, 2007, it claimed to have some 437 active customer accounts in the United States, a 44% increase over the comparable period in 2006.  It also notes that its target market remains substantially underpenetrated and it believes the current accounts represent only an approximate 10% of hospitals in the United States which perform its targeted procedures.  Revenues for the year ended December 31, 2007 were $29.5 million, a 75% increase from 2006.

While most of the Dover, NH-based company’s backers are VC’s, it does note that entities affiliated with Medtronic, Inc. (NYSE: MDT) are listed as being a 8.8% owner of the company.

Jon C. Ogg
March 13, 2008