US-based dialysis technology producer Outset Medical has filed for a $100m initial public offering that would give medical device maker Baxter International the chance to exit.
Outset is working on a system that can perform kidney dialysis using only a tap and an electrical outlet. It incorporates water purification system technology in addition to the automated production of dialysis fluid.
The company received US regulatory approval for home use of its product in March this year and intends to channel the IPO proceeds into growing its sales and customer support capabilities in addition to research and development activities.
The offering will follow some $434m of funding disclosed by Outset since it was founded in 2003. It raised $125m from investment and financial services group Fidelity, D1 Capital Partners, Partner Fund Management, Perceptive Advisors and funds advised by T. Rowe Price in February this year.
Mubadala Investment led Outset’s $132m series D round in 2018, investing with Baxter subsidiary Baxter Ventures and fellow existing backers Fidelity, Partner Fund Management, Perceptive Advisors, Warburg Pincus and funds advised by T. Rowe Price. Its earlier investors include CRG and Vertical Group.
Baxter’s stake in the company is sized at under 5%. Its largest investors are Warburg Pincus, which owns a 28.2% stake, Fidelity (15%), D1 Capital Partners (12.1%), T. Rowe Price (11.7%), Mubadala (9.1%), Partner Fund Management (7.5%) and Perceptive Advisors (6.5%).
BofA Securities, Morgan Stanley, Goldman Sachs, SVB Leerink and Stifel Nicolaus have been appointed underwriters for the offering, which is slated to take place on the Nasdaq Global Select Market.
Image courtesy of Outset Medical, Inc.
