Pulmonx is a medical technology company based in Redwood City, Calif. The company is working to expand the Zephyr Endobronchial Valve (Zephyr Valve), which is a unique treatment for patients with severe emphysema. On Sept. 4, the company filed form S-1 (registration statement) with the SEC, which is the first move toward going public. Since then, Pulmonx has increased the IPO by 75 percent, up to 10 million shares at $17 – $18 per share.
Why did Pulmonx's IPO increase?
Based on the increased number of shares and the boost in the price per share, Pulmonx is seeking heightened capital to expanded the Zephyr Valve, which is the company's medical technology product.
Specifically, the company wants to hire marketing and sales professionals, fund research and development for product improvements, pay a success fee of $1.9 million to one of their institutional investors, and gain capital. It looks like Pulmonx wants more out of the gate after the success fee payback is done.
Pulmonx's IPO just got bigger
Pulmonx $LUNG is a medical device company with their Pulmonx's Zephyr Valve, a severe emphysema treatment device, now commercially available in more than 25 countries, delivering over 80,000 valves used to treat more than 20,000 patients through June 30, 2020. #Health #Invest— Candy Man (@ipo_candy) September 30, 2020
Pulmonx, which will go by the ticker symbol "LUNG," filed a revised registration statement on Sept. 30. In the statement, the company announced that they are raising the roof on the Pulmonx IPO. Prior to the update, Pulmonx set the IPO at 6.7 million shares for $14 – $16 each. A 75 percent raise sets the IPO at 10 million shares for $17 – $18 per share.
With the revised documents, Pulmonx could raise 75 percent more than initially expected.
The Zephyr Valve entered pre-market approval in 2018. Pulmonx has distributed the product commercially in at least 25 countries. The product has treated 20,000 patients through the end of the first half of 2020.
According to Pulmonx, the company secured $32 million in revenue over the course of 12 months ending June 30, 2020. Emphysema, which the Zephyr Valve treats, is a type of chronic obstructive pulmonary disease (COPD) that impacts more than 3 million Americans. Clearly, there's a market out there for the treatment.
Join us Wed 9/9 for an educational webinar "A Breath of Fresh Air for Patients and Clinicians" to learn about the Zephyr Valve treatment for #COPD/emphysema.— my_lungs (@my_lungs) September 2, 2020
Speakers: Dr. Wood, a thoracic surgeon, Diane Lockhart, RN, and a treated patient - https://t.co/mIMKMwHxWE
What the Pulmonx IPO increase means for investors and emphysema patients
An increase in the price and number of shares for the Pulmonx IPO means that people will be paying more for the initial investment. However, the product has already moved beyond clinical trials — unlike the recently announced Taysha Gene Therapies IPO, which still holds preclinical status. Pulmonx is less risky than other biomedical engineering companies.
However, Pulmonx isn't immune from the volatility that traditionally accompanies an IPO, especially considering the "history of significant net losses" as addressed in the registration statement.
For emphysema patients, the Pulmonx IPO hike means greater capital for an innovative treatment that has already proven itself on the market. Streamlined development and expansion could mean that more emphysema patients have the opportunity to receive treatment with the Zephyr Valve.
Where to buy the Pulmonx IPO
Pulmonx plans to trade on the Nasdaq Exchange. If they haven't already, investors can open a brokerage account to purchase Pulmonx shares after the date arrives. The company hasn't provided an official date for going public.