Updated to include comment from CEO Erica Rogers
Silk Road Medical late yesterday priced its initial public offering, looking to raise approximately $120 million.
The Sunnyvale, Calif.-based company said it plans to float 6 million shares of its common stock at a price of $20 per share. The offering also includes a 30-day underwriters option to purchase an additional 900,000 shares of common stock.
Silk Road Medical produces the Enroute transcarotid neuroprotection and stent system, which is intended for use during the transcarotid artery revascularization procedure, or TCAR.
“The Enroute system is part of the devices that are used in a procedure called TCAR, a new minimally invasive, technologically advanced procedure for the treatment of carotid artery disease. It’s really the first advancement in the treatment of carotid artery disease up against a gold standard that has been in place for almost 65 years,” prez & CEO Erica Rogers told MassDevice.com in an interview.
The Enroute device and associated TCAR procedure are meant to provide a less invasive alternative to carotid endarterectomy, Rogers said. She is hopeful that the TCAR procedure will reduce overall morbidity and mortality as compared to open surgery.
“We are very interested in reducing the burden of stroke in the United States, and as well, ultimately elsewhere. We feel like we’re just getting started on this mission and funds will be used to allow us to continue our mission in reducing the devastating impact of stroke,” Rogers said. “We have a big task ahead of us in simply advancing TCAR into the market in the United States.”
The neuroprotection system is designed to set up flow reversal in the brain, so blood is flowing backwards essentially away from the brain during the stunting aspect of the procedure, Rogers said. By doing so, any debris liberated during the stenting step won’t travel into the brain and cause a stroke.
“And the whole idea in treatment of carotid artery disease is to prevent a future stroke – that’s why we’re treating the lesion in the first place. So the goal is to prevent that future stroke without causing a stroke in the first place, or during the procedure,” Rogers said.
The company said that it plans to use the cash to expand its sales force and operations, increase R&D including new clinical trials, expand internationally and possibly acquire new ventures or technologies.
The company said it plans to list under the “SILK” symbol on the NASDAQ exchange, according to a press release.
Silk Road has raised at least $104 million since 2015, when it first won 510(k) clearance from the FDA for Enroute in carotid stenting and angioplasty procedures. Pre-market approval for high-risk patients followed in May of that year.