Tactile Systems Files for IPO

Tactile Systems Technology has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $86.25 million. The company intends to list on the Nasdaq Global Market under the symbol TCMD,

The underwriters for this offering are Piper Jaffray, William Blair and Canaccord Genuity.

This is a medical technology company that develops and provides innovative medical devices for the treatment of chronic diseases at home. Tactile Systems focuses on advancing the standard of care in treating chronic diseases in the home setting to improve patient outcomes and quality of life and help control rising health care expenditures. The company possesses a unique, scalable platform to deliver at-home health care solutions throughout the United States.

This evolving care delivery model is recognized by policy-makers and payers as a key for controlling rising health care expenditures. The initial area of therapeutic focus is vascular disease, with a goal of advancing the standard of care in treating lymphedema and chronic venous insufficiency. The proprietary ACTitouch System is a home-based solution for chronic venous insufficiency patients that may be worn throughout the day.

The company’s products deliver cost-effective, clinically proven, long-term treatment of chronic diseases. The company employs a direct-to-patient and -provider model, through which it obtains patient referrals from clinicians, manage insurance claims on behalf of patients and their clinicians, deliver solutions to patients and train them on the proper use of solutions in their homes.
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The company described its finances as follows:

For the year ended December 31, 2014, we generated revenues of $47.7 million and had net income of $2.1 million. Our revenues increased 28% during the year ended December 31, 2014 compared to the year ended December 31, 2013. For the nine months ended September 30, 2015, we generated revenues of $41.7 million and had net income of $0.1 million. Our revenues increased 41% during the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014.

Net proceeds from the offering are intended to be used for marketing, product development and clinical activities. The remainder will be put toward working capital, general and administrative expenses and other general corporate purposes.