Inogen ($INGN) is up almost 10% on news that it received FDA clearance for its latest home oxygen concentrator. Later this year, the company expects to start selling the device, which it has dubbed the Inogen At Home. It is up 32% since its February IPO.
The company already markets lightweight, portable oxygen concentrators, but this is the first it's specifically targeting for home use. Inogen estimates that more 2.5 million U.S. patients and more than 4.5 million patients worldwide use oxygen therapy.
The company expects that the Inogen At Home will be useful for patients that require oxygen only at night and do not yet need a portable solution, which it estimates are 30% of total oxygen patients in the U.S.
The new oxygen concentrator is the lightest yet that provides this level of flow, five liters per minute of continuous oxygen, according to the company. The device also has the lowest power consumption of any oxygen concentrator with this capacity. It's also 10 to 20 lbs. lighter than oxygen concentrators with an equivalent oxygen flow capacity, Inogen noted.
"Our product pipeline includes a stationary concentrator and a fourth-generation portable oxygen concentrator. The stationary concentrator, which we are calling Inogen At Home and expect to launch in 2014, will allow us to access the non-ambulatory patient group and serve as an emergency backup for our Inogen One patients," the company said in its IPO filing.
Up next is a very lightweight, portable device, but it's not slated for a few more years. "The fourth-generation portable oxygen concentrator will be an ultra-lightweight portable oxygen concentrator and we expect to launch this in the next several years," the SEC filing added.
Inogen venture investors include Novo A/S, Versant Ventures, Arboretum Ventures, Avalon Ventures and AMV Partners. The lock-up expiry for the IPO shares is on August 13.
- here is the press release