Tactile Systems Releases Tenative Pricing for IPO

Tactile Systems Technology has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 4 million shares within the range of $14 to $16 per share, with an overallotment option for an additional 600,000 shares. At the maximum price the entire offering is valued up to $73.6 million. The company intends to list its shares on the Nasdaq Global Market under the symbol TCMD.

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

This medical technology company develops and provides innovative medical devices for the treatment of chronic diseases at home. The company 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 healthcare expenditures.

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Tactile Systems 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 company’s proprietary Flexitouch System is an at-home solution for lymphedema patients. Its proprietary ACTitouch System is a home-based solution for chronic venous insufficiency patients that may be worn throughout the day. The products deliver cost-effective, clinically proven, long-term treatment of chronic diseases.

Tactile Systems employs a direct-to-patient and direct-to-provider model, through which it obtains patient referrals from clinicians and manages insurance claims on behalf of patients and their clinicians.

In the filing, the company described its finances as follows:

For the year ended December 31, 2015, we generated revenues of $62.9 million and had net income of $1.4 million. Our revenues increased 32% during the year ended December 31, 2015 compared to the year ended December 31, 2014. For the three months ended March 31, 2016, we generated revenues of $13.7 million and had a net loss of $1.0 million. Our revenues increased 35% during the three months ended March 31, 2016 compared to the three months ended March 31, 2015.

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The company intends to use the net proceeds from this offering to expand its sales, marketing and product development. The remainder will be put toward working capital and general corporate purposes.