US-based sleep apnea therapy developer Inspire Medical Systems has filed for an $86.3m initial public offering that will enable medical device producer Medtronic and pharmaceutical group Johnson and Johnson to exit.
Spun out of Medtronic on 2007, Inspire has created a neurostimulation device that treats sleep apnea, a condition where a patient’s breathing is inhibited while they are asleep, by providing hypoglossal nerve stimulation in order to keep a user’s airways open.
The IPO proceeds will fund sales and marketing in the US and Europe as well as research and development. Inspire has disclosed $109m of venture funding, and made a $17.5m net loss from $28.6m in revenue in 2017.
Inspire’s most recent funding consisted of a $37.5m series F round in late 2016 that was led by Amzak Health Investors and backed by Medtronic, Johnson & Johnson, Orbimed, US Venture Partners (USVP), Synergy Life Science and Kleiner Perkins Caufield & Byers (KPCB).
Medtronic owns 5.7% of Inspire, whose other notable shareholders are USVP (16.2%), Orbimed (15.9%), Synergy (15.7%), KPCB (14.5%) and Amzak (10.3%).
The IPO is set to take place on the New York Stock Exchange. BofA Merrill Lynch and Goldman Sachs are the joint lead book-running managers for proposed offering while Guggenheim Securities, Stifel, and Wells Fargo Securities are co-managers.
– Image courtesy of Inspire Medical Systems, Inc.