Compression wearables player Tactile Systems trims its IPO offering to $46M

Flexitouch System

Tactile Systems, an at-home compression wearables player, reduced its IPO goal to $46 million, according to an amended filing with the SEC. That’s down from the company’s initial goal of up to $86 million.

In the amended filing with the SEC Wednesday, the company said it was reducing the proposed offering per share to $10 on the sale of 4 million shares, down from the range of $14 to $16 per share for the same number of shares it previously stated.

The company will trade under the ticker symbol TCMD.

Event

Join the world's top medtech executives virtually for the leading event in medtech — The Virtual MedTech Conference by AdvaMed

Expect the same high-quality education, world-class speakers and valuable business development in a virtual format. Experience more of the conference with on demand content and partnering, as well as livestreamed sessions.

The Minneapolis-based company develops home therapy devices to treat lymphedema and venous ulcers. Its lead product, the Flexitouch System, accounts for about 92% of the company’s sales—$43.7 million. The system is designed to mimic manual lymphatic drainage therapy, and can be applied daily in one-hour treatments at home.

In the regulatory filing, Tactile said it plans to use about $8.3 million of the proceeds to pay the cumulative accrued dividends of its Series A preferred stockholders. The funds also will be used  to expand its sales, marketing, reimbursement, clinical, regulatory and product development activities.

The company also provided preliminary 2Q numbers, saying that revenues for the period are likely to fall in the range of $19.4 million to $19.8 million. That’s up from $14.8 million for the same period last year.

Additionally, the company reported that for the 3 months ended June 30, it entered into contracts as an in-network provider covering over 30 million additional lives in the U.S., bringing Tactile’s number of total lives covered to more than 260 million in the country.

For 2014, the company reported revenues of $47.7 million and net income of $2.1 million. For the first nine months of 2015, it had $41.7 million in revenues with $0.1 million in net income.

- check out the SEC filing

Related Articles:
At-home compression wearable player Tactile Systems files for up to $86M IPO
A pair of med tech IPOs make it out as NantHealth, Clearside price and trade up
Buffeted by headwinds, Bavarian Nordic cancels IPO

Read more on

Suggested Articles

The immunoassay will measure neurofilament light chain protein levels, found in the blood and cerebrospinal fluid, and linked to nerve damage.

Emmecell aims to make corneal transplant surgery, which can take up to a year to heal from and fails up to 20% of the time, a relic of the past.

Seven developers will provide digital health solutions aimed at the COVID-19 pandemic, including smartphone apps, wearables and big data programs.