Concentric Medical, Inc. withdrew its IPO filing this morning, citing “unfavorable market conditions.” The company originally filed it IPO paperwork on August 17, 2007 and had planned to trade on the Nasdaq Global Market under the symbol “CLOT.”
Concentric Metal received FDA approval for its Merci Retrieval System in 2004, the only approved device that restores blood flow in ischemic stroke patients by removing blood clots. The company believes that their product could potentially treat 30% to 50% (210,000 to 350,000 cases annually) of all ischemic strokes in the United States, the third leading cause of death in the aging population. It is estimated that the Merci system has treated only 6,000 patients, an indication of the potential growth for use in the market. In 2006 and six-months ended in June 2007, Concentric generated sales revenues of $11.2 million and $7.8 million, respectively, and net income losses of $6.9 and $3.5 million, respectively.
Concentric Metal isn’t the only recent health care IPO withdrawal. This morning, Critical Homecare Solutions also withdrew. It looks like the health care IPO market isn’t so healthy right now but it isn’t the only industry needing some treatment.
February 15, 2008