Ultrasound catheter maker Shockwave Medical files $75M IPO

2015 Fierce 15 company Shockwave Medical is going public, filing for a $75 million IPO on the Nasdaq with the ticker symbol SWAV.

The Santa Clara, California-based company manufactures an ultrasound-powered balloon catheter that breaks up calcified plaques from inside the blood vessel, employing the same techniques used to shatter kidney stones.

By delivering sonic pulses through the entire artery wall and cracking calcium deposits at different layers, the narrowed blood vessel can be more evenly expanded using less pressure, which the company says can minimize the complications associated with traditional balloon dilations, such as dissections or tears.

Shockwave’s current M5 catheter was CE marked in April 2018 and received an FDA clearance for peripheral artery disease later that July, though its technology initially received green lights in 2015 and 2016.

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The company’s smaller C2 catheter, designed for coronary artery disease, received a CE mark in June 2018, and has started clinical testing this year for approvals in the U.S. and Japan, ahead of potential commercial launches planned for 2021.

The company also received 510(k) clearance and a CE mark for its S4 catheter, for treating peripheral artery disease below the knee, and is currently conducting a limited market evaluation, according to Shockwave’s prospectus filed with the SEC. A treatment for calcified aortic valves is under development as well.

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Shockwave plans to offer 5 million shares with a price range of $14 to $16. At the midpoint, the company would have a market value of about $428 million, according to Renaissance Capital. More detailed pricing information is expected in early March.

The company hopes to use the proceeds to bolster its marketing activities in the U.S. and abroad, including expanding its sales and commercialization staff, as well as fund additional R&D and potential M&A activities.