Florida-based device maker iRadimed is looking to raise up to $12 million through an initial public offering, hoping to use the funds to expand its sales & marketing efforts and boost research & development for its MRI-friendly infusion pumps.
The 22-year-old company specializes in MRI-safe devices, including the "world’s 1st and best selling" MRI compatible monitoring system and the only non-magnetic IV pump specifically designed for use in the MRI environment.
Following the IPO, which has yet to get detailed pricing, iRadimed will trade on the Nasdaq exchange under the ticker IRMD.
iRadimed has a fairly small sales force in the U.S., with 8 sales reps and 2 clinical support reps, according to the IPO prospectus. The device maker hopes to use some of the funds from the IPO to boost its U.S. sales force to 10 sales reps and 3 clinical support reps by the end of 2014. iRadimed also has agreements with 35 independent distributors around the world.
The company generates revenue through 1-time sales of the pump systems and accessories, ongoing service contracts and sales of disposable proprietary IV tubing sets. Last year’s revenues amounted to $11.3 million and profits were $2.8 million, iRadimed reported.
The company has as corner on its market, especially since its largest competitor, which iRadimed didn’t name, dropped out of the market due to "ongoing regulatory issues." That erstwhile rival should disappear entirely from the global market by June 30, 2015, iRadimed said.
The company has had a few rough patches, including a recall in August 2013 over a software glitch that caused some of its infusion pumps to display the wrong doses. iRadimed issued a software update to mitigate the issue, but not before the FDA gave the recall its highest risk Class I status, reserved for issues that could lead to patient injury or death.