After raising $125 million for its commercialization efforts earlier this year, portable dialysis machine manufacturer Outset Medical is now going public with a $241.7 million Nasdaq IPO.
Trading under the ticker symbol “OM,” the company priced 8.95 million of its shares at $27 apiece, upsizing its previous plans to offer 7.6 million shares between $22 and $24—a 38% boost overall, according to Renaissance Capital. The offering is set to close Sept. 17.
The former Fierce 15 winner’s Tablo hemodialysis system is designed to serve as a standalone unit. While traditional machines may require a connection to an outside source of clean water, the Tablo unit includes integrated water purification hardware, allowing it to run off of tap water and a basic electrical outlet.
It also employs prewired, single-use cartridges to reduce the number of steps and training required to set up the machine. The system can perform dialysis for as little as 30 minutes or as long as 24 hours.
In July, the company reported the system’s first use within a patient’s home, after it received an expanded clearance from the FDA in late March.
“Tablo was designed to simplify dialysis, making it easier and more accessible for patients to take advantage of the safety, convenience and flexibility of dialyzing at home,” CEO Leslie Trigg said at the time. “We are proud to offer them this new, life-enhancing option, particularly in light of the COVID-19 related challenges dialysis patients and providers are experiencing.”
In May, the company deployed 50 Tablo systems for emergency use to five hospitals in New York City and Long Island under a multiyear contract with the U.S. Department of Health and Human Services, originally formed to provide dialysis services in communities following natural disasters.
Outset Medical estimates that dialysis therapy is currently delivered to more than 550,000 patients in the U.S. multiple times per week, totaling 85 million treatments per year and costing about $75 billion.