SurgiQuest Files for IPO

By Chris Lange Updated Jan 13, 5:17PM EST · Published Nov 11, 11:40AM EST

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SurgiQuest has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing terms were given in the filing, but the offering is valued up to $75 million, although this number is usually just a placeholder. The company has yet to state its intent on which exchange it wants to list its shares or under which symbol.

The underwriters for the offering are Piper Jaffray, Canaccord Genuity and Stifel.

This is a commercial stage global medical technology company that is revolutionizing minimally invasive surgery with AirSeal, its proprietary surgical access management system that SurgiQuest believes offers significant clinical benefits for patients and economic benefits for health care providers.

The company refers to the combination of its proprietary AirSeal technology and the surgical procedures that they enable as “low impact surgery.” SurgiQuest believes low impact surgery enables a wider range of surgical procedures to be performed with less invasive surgical access, thereby broadening the population of patients for whom minimally invasive surgery may be applicable.

As of September 30, 2015, over 1,600 AirSeal systems were deployed in more than 700 institutions worldwide, and the company believes AirSeal disposable devices have been used in more than 340,000 surgical procedures worldwide since 2011. Quarterly sales of AirSeal disposables have grown from less than 4,000 disposables sets during the three months ended March 30, 2012 to more than 44,000 disposables sets during the three months ended September 30, 2015; and more than 135,000 disposables sets were sold during the nine months ended September 30, 2015.

In the filing, SurgiQuest detailed its finances as follows:

For the years ended December 31, 2013 and 2014, our total revenue was $19.1 million and $30.2 million, respectively, and our net losses were $8.3 million and $14.8 million, respectively. For the nine months ended September 30, 2014 and 2015, our total revenue was $20.6 million and $34.7 million, respectively, and our net losses were $11.4 million and $15.1 million, respectively.

The company intends to use the proceeds from the offering to expand sales, continue clinical research and satisfy a royalty obligation to IP Technologies. The remainder will be used for working capital and general corporate purposes.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.