Pavmed said earlier this week it will extend its heavily reduced $6 million IPO an additional 45 days.
The IPO was dramatically reduced in January, with the company announcing that it planned to float a reduced 1.2 million shares at $5 a piece. Pavmed expects the IPO to bring in $5.4 million after sales commissions but before expenses. The offering includes an 800,000-share over-allotment option, the company said.
That’s a far cry from the $23 million top end Pavmed listed when it registered the IPO last May. Pavmed is developing devices in 5 areas, according to its IPO registration: The PortIO long-term implantable vascular access device; the Caldus line disposable tissue ablation devices, including renal denervation for hypertension; the CarpX percutaneous device to treat carpal tunnel syndrome; the NextCath self-anchoring short-term catheter; and the NextFlo disposable infusion pump.
The new closure date for the offering will be April 28, the company said in an SEC filing.
The founders of Pavmed – Drs. Lishan Aklog and Brian deGuzman and Michael Glennon – were also behind Pavilion Medical Innovations, a medical device incubator built around a faster, low-cost development plan. Pavilion spun out Vortex Medical, acquired for $55 million in 2012 by AngioDynamics (NSDQ:ANGO), and Saphena Medical, which in March raised a $1.3 million round for its device to harvest veins for coronary artery bypass grafting.
Pavilion also created Kaleidoscope Medical, which is developing a reversible inferior vena cava filter, and Cruzar Medsystems and its Houdini peripheral chronic total occlusion device. All 4 companies raised just $1.5 million to $3.5 million and “rapidly advance their products,” according to Pavmed’s original filing last year. In the case of Vortex Medical, the AngioVac system won 510(k) clearance from the FDA 16 months after its founding. Saphena won 510(k) clearance for VenaPax in 18 months and has had it on the market since last October, according to the filing.
Aklog, deGuzman and Glennon are betting that their formula for commercializing single-product companies can be applied to a company making multiple devices, dramatically slashing the estimated $30 million and 5 years it typically takes to get to market.