- Ra Medical Systems has revised the terms of its proposed initial public offering, indicating in a regulatory filing that it now aims to raise a maximum of $61.33 million. The company in July had filed to raise $86.25 million.
- In its prospectus, the company said it planned to offer 3.33 million shares of common stock to the public at a price of $14 to $16 a share. Ra estimated it would receive net proceeds of about $43 million, after underwriting costs and commissions, based on a price of $15 a share.
- Ra, which makes a laser-based treatment for restoring blood flow in arteries and clearing chronic skin conditions, said it expects to use the proceeds from the IPO to expand its direct sales force and marketing of its products and to conduct clinical trials. It could use part of the funds for acquisitions to bolster its product offerings, the company said in the filing.
Ra over the past year launched its Dabra laser system, which has FDA clearance to treat blockages in patients with peripheral vascular disease, or PAD, that typically occur in the legs. Ra is competing against leading medical device companies including Medtronic and Boston Scientific in the PAD market.
Ra estimates that about 8.5 million Americans have PAD, a condition in which the arteries carrying blood from the heart to the legs and arms narrow due to plaque build-up. The disease can lead to life-threatening blood clots.
The Dabra device is approved to treat chronic total occlusions, in which the artery is completely blocked. Ra said the treatment, which essentially dissolves plaque to remove the blockage, offers significant benefits over other procedures. Those can involve cutting, shaving or sanding the plaque.
Ra said it intends to pursue additional indications for Dabra, including atherectomy to remove plaque from blood vessels in PAD patients, coronary artery disease, in-stent restenosis, and other forms of blockages in the veins and arteries.
Based in Carlsbad, Calif., Ra had revenue of $5.87 million in 2017 and posted a net loss of $17.76 million. The company has applied to list its shares on the New York Stock Exchange under the symbol RMED.