Natick, Massachusetts-based Allurion went public on Aug. 2 under the ALUR ticker. The business combination took place with Compute Health Acquisition Corp, a special purpose acquisition company (SPAC).
Allurion develops an artificial intelligence-powered weight loss program. Its program combines its Allurion Balloon with the Allurion Virtual Care Suite. The company said its balloon is the world’s first and only swallowable, procedure-less gastric balloon for weight loss. Its Iris platform powers the Virtual Care Suite, a remote patient monitoring solution. The company also offers the Virtual Care Suite as a standalone product.
Earlier this year, the company teamed up with Medtronic to pursue AI-based weight loss treatments.
“Since day one at Allurion, we have been dedicated to ending obesity through our full-stack weight loss platform consisting of our revolutionary balloon, artificial intelligence platform, and behavior change program,” said Shantanu Gaur, co-founder and CEO. “Weight management and artificial intelligence are two themes that will shape the next several decades of healthcare, and Allurion is doing pioneering work in both. The world-class syndicate of investors and partners that have backed this transaction puts us in an excellent position to fulfill our mission of ending obesity.”
SPAC mergers took the medtech industry by storm a few years ago but have produced varying results. Read here about some of the outcomes of these planned acquisitions.
More about Allurion going public
Net proceeds from Allurion’s combination with Compute Health Acquisition Corp total approximately $100 million. That comes in significantly higher than the combination’s $70 million minimum cash closing condition. It includes a private investment in public equity (PIPE) led by RTW Investments. Additionally, former Medtronic CEO and Chair Omar Ishrak contributed equity investments.
Proceeds also included a non-dilutive, synthetic royalty financing from entities that engaged RTW, plus a senior secured term loan from an affiliate of Fortress Investment Group.
Allurion’s $100 million equity facility with Chardan Capital Markets, to be used at its discretion, further supports the transaction.
Allurion will continue to be led by Gaur. Ishrak and longtime investor Krishna Gupta of REMUS Capital now co-chair the board. It also includes Michael Davin, former Cynosure chair and CEO, Nick Lewin, chair of Establishment Labs and Doug Hudson, founding CEO of SmileDirectClub. Bob Langer, MIT Institute Professor and Co-Founder of Moderna, serves as chair of the scientific advisory board.
