The news that Silver Spring, Md.-based biotech company Aziyo Biologics is going public is already intriguing a whole slew of investors. Here's what we know about their forthcoming IPO date and their projected $57.5 million capital gain in the market.
What is Aziyo Biologics?
According to the company's registration statement, Aziyo Biologics is a "commercial-stage regenerative medicine company" with eight different proprietary products for various markets (including soft tissue reconstruction, implantable cardiovascular and spinal repair). Overall, their core products serve both the life-sustaining and cosmetic fields.
Simpliderm - proud to have worked with Aziyo Biologics in the launch of this product and to be the first surgeon in the world to use it! Plastic surgeons have a new choice when it comes to breast reconstruction and soft tissue support. pic.twitter.com/Adr5D0AEf1— Jeffrey Feiner, MD, FACS (@FeinerPlastics) September 13, 2019
According to their website, more than 1,200 institutions use Aziyo technologies across the world. The company has a practice of partnering with commercial businesses that can help Aziyo promote their products in a more expansive way. In 2019, Aziyo signed an agreement with Medtronic over FiberCel bone graft matrix distribution. During the same year, they solidified an agreement with Boston Scientific over CanGaroo tissue-based envelope promotion.
From H2 of 2019 to H1 of 2020, Aziyo Biologics received $42 million in revenue. During 2019, they also lost $11.9 million, with $9.7 million lost in H1 of 2020. Their gross margins went up from 41 percent to 46 percent over the course of 2019.
When is Aziyo going public?
Aziyo Biologics (AZYO) is expected to price its IPO on October 7. The IPO lockup period expires on Inventiva SACA (NASDAQ:IVA) on October 8, with close to 25% of shares being freed up to be traded.— Flock Raiser (@FlockRaiser) October 4, 2020
The company plans to price their per-share value on Wednesday, Oct. 7. After that, they expect to proceed with their IPO upon finalized SEC review (the length of which is often tough to predict). Market conditions may also affect the Aziyo IPO date.
What is the Aziyo stock IPO price?
While we have yet to determine the official number of shares and price per share, we do know that Aziyo is aiming for an IPO worth $57.5 million. Estimates say that each share could be worth $16–18 for upwards of 3 million shares. Existing investors plan to purchase $20 million worth of shares off the bat.
It's worth noting that the company's principal stakeholders hold significant voting power (each holds more than 5 percent of stock but they collectively control 57.9 percent of stock). It's not nearly as extreme as the Palantir three-tiered voting model, but it is worth looking into before you invest.
If all goes according to plan, Aziyo could earn a fully diluted market value of more than $177 million.
Look out for the Aziyo ticker symbol
IPO offering by Aziyo Biologics, Inc. (AZYO) -- Set Terms— PIPE Tracker (@aftermark3t) October 1, 2020
Once the company goes public, Aziyo will trade on the Nasdaq under the ticker symbol "AZYO." While company executives have yet to solidify an Aziyo IPO date, investors can keep their eyes peeled for the forthcoming IPO price on Wednesday, which will soon be followed by a segue into the public sector.
Aziyo Biologics believes their focus on regenerative medicine, broad portfolio of core products, and growing body of clinical data help position them effectively in a growing market. With the Aziyo IPO date on the horizon following a finalized per-share price, only time will tell if they reach that initial $57.5 million goal—and subsequent, ongoing investor support.