Silk Road Medical Files for IPO to Raise $86.25 Million for Innovative Stroke Prevention Device

VCBeat (WeChat Official Account: vcbeat) has learned that on March 6, 2019, Silk Road Medical, a medical device company headquartered in Sunnyvale, California, announced its plan to conduct an initial public offering (IPO) on the Nasdaq stock exchange under the ticker symbol SILK, aiming to raise $86.25 million. Silk Road Medical is a manufacturer of stent and neuroprotection systems, whose medical devices help restore blood flow in the carotid arteries to prevent stroke.

According to the prospectus filed by Silk Road Medical with the U.S. Securities and Exchange Commission (SEC), the company plans to use the proceeds from the offering to expand its market presence and commercial operations in the United States and internationally, as well as to increase research and development activities and initiate new clinical studies. The financial terms of the offering were not disclosed.

Previously, Silk Road Medical completed a $3.4 million Series A financing round in May 2007 and a $57 million venture capital financing round in October 2015. In July 2017, Silk Road Medical closed a $47 million Series C financing round, led by Norwest Venture Partners, with participation from Janus Capital Management, Warburg Pincus, The Vertical Group, and CRG. The funds raised were intended to drive the commercialization of Silk Road Medical’s devices.

Silk Road Medical Plans IPO to Develop Novel Surgical Techniques for Stroke Prevention. According to industry experts, carotid artery stenosis significantly increases the risk of ischemic stroke. Clinically, it is typically managed with medication or two types of invasive carotid revascularization procedures: carotid endarterectomy (CEA) and carotid artery stenting (CAS).

Silk Road Medical’s new product, the ENROUTE Transcarotid NPS, is different. This minimally invasive system is designed for transcarotid artery revascularization (TCAR). It involves inserting a vascular sheath above the patient’s clavicle to establish a new common carotid artery blood circuit that diverts carotid blood flow away from the brain, thereby preventing embolization of plaque debris dislodged during stenting or balloon angioplasty. The blood is first shunted through a filtration system and then returned to the body via the femoral vein in the patient’s thigh. According to Silk Road Medical, unlike filters placed entirely within the artery, this minimally invasive system can completely reverse arterial blood flow and filter it extracorporeally, thus preventing smaller fragments from entering the brain and causing injury.

Currently, Silk Road Medical’s first-generation ENROUTE Transcarotid NPS received U.S. FDA clearance in 2015, while its second-generation NPS obtained EU CE marking and U.S. FDA clearance in March and April 2016, respectively. The ENROUTE Transcarotid Stent System received premarket approval (PMA) from the U.S. FDA in May 2015.

Silk Road Medical stated that it plans to obtain additional regulatory approvals for the NPS in China, Japan, and other markets.

(Compiled by Ning Chen)