EndoChoice yesterday priced its initial public offering at $15 per share, the low end of the range, raising $95.2 million for its Fuse full-spectrum endoscope.
EndoChoice shares are due to begin trading on the New York Stock Exchange under the “GI” symbol today, the company said.
Alpharetta, Ga.-based EndoChoice had said it planned to float 6.25 million shares at $15 to $17 each, for a midpoint raise of $100 million. The company filed confidentially in January for an IPO worth up to $115 million, scarcely 2 months after pulling down a $57 million funding round for its Fuse full-spectrum endoscope.
J.P. Morgan and BofA Merrill Lynch are acting as joint book-runner, with William Blair and Stifel as co-managers for the offering, EndoChoice said.
In early March , the company raised $57 million from Ally Bridge Group, Rock Springs Capital, Deerfield and Sequoia Capital. EndoChoice tapped ex-Volcano CEO Scott Huennekens as chairman in April.
EndoChoice has said it plans to use the IPO proceeds to expand the commercial footprint of the Fuse device, which features 3 small cameras designed to provide a 330° view; the company claims is nearly double the range of typical colonoscopy devices.
Fuse won FDA 510(k) clearance in the U.S. in June 2013. EndoChoice also makes the Fuse gastroscope, which has 2 cameras designed to expand the field of view from 150° with standard gastroscopes to 245°.
EndoChoice also said it’s being sued by Medigus (TLV:MDGS) for patent infringement. Medigus alleges that the Fuse device infringes its patent covering “Multiple view endoscopes,” EndoChoice said, noting that the patent “requires a specific configuration for objective lenses (which could be cameras or other objective lenses of optical channels) utilized as part of an endoscope that we do not believe is characteristic of the Fuse system and, therefore, we believe the technology utilized in Fuse clearly falls outside of the claims” of the Medigus patent.
“Accordingly, we and our counsel believe that Medigus Ltd.’s assertions are without merit and intend to vigorously defend any claims or suits brought against us related to the Medigus Ltd. patent,” EndoChoice said. “We have concluded that a loss from this matter is remote and therefore have not recorded a loss reserve. In addition, we maintain a $5 million insurance policy to cover costs and damages related to assertions of intellectual property infringement against our Fuse endoscope system.”