TransMedics sets IPO range with $75m midpoint

TransMedics yesterday set the range on its forthcoming initial public offering, which would gross more than $75 million at the midpoint.

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 TransMedics 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.

Yesterday the company said it plans to float 4.7 million shares at $15 to $17 apiece, for a maximum of $79.9 million and a $75.2 million midpoint. The top end of the range is less than the company forecast when it registered the IPO earlier this month for as much as $86.3 million. TransMedics plans trade the stock on the NASDAQ exchange under the “TMDX” symbol.

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.

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