TransMedics added more than $10 million to the previous top end for the initial public offering that’s slated to launch today, saying it now expects to raise $91 million.
Andover, Mass.-based TransMedics developed a transportation system for organ transplants that’s designed to keep donated hearts, lungs and livers in near-living condition until transplantation. A year ago it won pre-market approval from the FDA for its OCS Lung transplant device for standard double-lung transplantation procedures; in Europe, the OCS Heart and OCS Lung devices are already on the market.
Last week TransMedics set the flotation’s range at $15 to $17 apiece for 4.7 million shares, for a maximum of $79.9 million and a $75.2 million midpoint (when it registered the IPO, TransMedics said it hoped to raise $86.3 million). But yesterday the company said it plans to float nearly 5.7 million shares at $16 each, for gross proceeds of $91.0 million. That could climb by another $13.7 million if the underwriters exercise the full over-allotment of another 854,000 shares.
Shares are slated to begin trading today on the NASDAQ exchange under the “TMDX” symbol, with the offering due to close May 6. Morgan Stanley and J.P. Morgan are joint book-runners on the deal, with Cowen and Canaccord Genuity as co-managers.
TransMedics has said it expects FDA action over the next 18 months on the other PMAs it’s submitted, including one filed last August for unused donor lungs and another filed in December 2018 for currently utilized and un-utilized hearts donated after brain death.
In the U.S. the OCS devices are reimbursed using existing billing codes, with Medicare and private payors covering their use in pivotal trials of all three organs and for OCS Lung after last year’s approval.
“We believe these established channels will continue to facilitate commercial reimbursement for the OCS Lung and, if they are approved by the FDA, for the OCS Heart and OCS Liver. We are also in the process of seeking long-term reimbursement for our products outside of the United States,” TransMedics said in its original IPO filing, adding that it put up sales of $13.0 million last year, up 68.8% compared with 2017.
