ConforMIS Proposes $173M IPO (HealthPointCapital)
ConforMIS, Inc. filed an S-1 to raise up to $172.5 million through an initial public offering (IPO) of common shares. The price range and number of shares to be sold in the offering has not yet been determined.
The company intends to use the proceeds to expand the company’s manufacturing capacity, sales, research and development, clinical activities, and to fund working capital and general corporate purposes.
ConforMIS develops customized (individually sized and shaped) joint replacement implants through its proprietary iFit Image-to-Implant technology platform. The company’s iFit platform aims to contour each implant to the patient’s unique anatomy and consists of three elements: 1) proprietary algorithms and computer software to design the implants and associated patient-specific instrumentation (iJigs), 2) 3-D printing technology to manufacture the iJigs (currently in process of extending capability to manufacture certain components of customized knee implants) and 3) delivery. Presently ConforMIS offers a line of customized knee implants, however, management expects to submit an application for clearance of its iTotal Hip, the company’s first customized hip replacement implant, to the FDA in 2015. The company is based in Bedford, MA, and as of April 30, 2015, had 344 full-time employees.
For the 2014 fiscal year, ConforMIS reported total revenue of $48.2 million, representing an increase of 39% on a reported basis compared to $34.6 in 2013. Gross margin increased to 36.4% in 2014 from 21.1% in 2013. As of March 31, 2015, ConforMIS’ LTM revenues were $52.1 million. To date, the company has sold more than 30,000 knee implants in the United States and Europe.
Since 2004, ConforMIS has raised an aggregate of $330 million from the sale of preferred stock and the exercise of preferred stock warrants and common stock warrants and options. The company’s largest shareholders include: Procific, Veron International, SGR Sagittarius, Aeris Capital, Tasik Temenggor Investments and Stanhope Investments.
The company plans to list on the NASDAQ Global Market (NasdaqGM) under the ticker symbol “CFMS”. JP Morgan and Deutsche Bank are acting as Joint Lead Bookrunners on the deal, while Wells Fargo and Canaccord will serve as a Co-managers.