Technology

908 Devices Announces Potential IPO Pricing

908 Devices 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 6.25 million shares in the range of $15 to $17 apiece, with an overallotment option for an additional 937,500. At the maximum price, the entire offering is valued up to $122.19 million. The company intends to list its shares on the Nasdaq under the symbol MASS.

The underwriters for the offering are Cowen, SVB Leerink, Stifel and William Blair.

This company has developed an innovative suite of purpose-built handheld and desktop mass spectrometry devices for the point-of-need. These devices are significantly smaller and more accessible than conventional laboratory instruments.

These mass spectrometry devices are specifically used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to address directly some of the most critical problems in life sciences research, bioprocessing, industrial biotech, forensics and adjacent markets.

Management believes this technology platform can expand in future opportunities far beyond the current $8 billion market for these devices and associated front-end separations. Management estimates a total addressable market for its devices to be $4.8 billion in 2020, growing to an estimated $22 billion over the next five years.

Since the launch of its first device, the company has sold more than 1,200 handheld and desktop devices to over 300 customers in 32 countries, including top pharmaceutical companies, as well as numerous domestic and foreign government agencies and leading academic institutions. The firm generated revenue of $9.6 million and $21.2 million in the nine months ended September 30, 2019, and 2020, respectively, representing 120% period-over-period growth, while incurring net losses of $12.9 million and $2.6 million in the same periods, respectively.

The company intends to use the net proceeds from the offering for working capital and general corporate purposes. In terms of the specifics, the company wants to use $25 million to expand its commercial operations to grow and support the installed base of our products among life sciences research customers in the United States and internationally. It further plans to use an additional $20 million to fund research and development efforts to expand the applications of its current devices and to create enhanced products with its platform of technologies.