Vapotherm Raises $56 Million in IPO, Debuts on NYSE Under Ticker VAPO

VCBeat (WeChat: vcbeat) has learned that Vapotherm, a respiratory device company based in New Hampshire, filed for an IPO of $58 million with the U.S. Securities and Exchange Commission this October. Yesterday, it announced that the actual amount raised from the IPO was $56 million, with a total issuance of 4 million shares priced at $14 per share. On the same day, Vapotherm listed on the New York Stock Exchange under the ticker symbol NYSE: VAPO.

Vapotherm, founded in 1999 and headquartered in Exeter, New Hampshire, is a well-established company specializing in the research and development of respiratory devices. Leveraging its groundbreaking patented Hi-VNI (High-Flow Nasal Ventilation) technology for heated humidification, the company has developed a series of respiratory devices known as Precision Flow. These devices are characterized by their ability to provide mask-free, high-flow oxygen support. They deliver high-velocity, heated, and humidified oxygenated air to patients suffering from conditions such as pneumonia, chronic obstructive pulmonary disease (COPD), asthma, and heart failure, and are primarily used in hospital intensive care units (ICUs).

Image source: Vapotherm official website

Precision Flow devices equipped with Hi-VNI technology can be used to treat acute respiratory distress in adult patients, helping to reduce their need for more invasive pressure therapies, including mechanical ventilation. They can also serve as a weaning tool for infants recently liberated from ventilators, supporting their ongoing oxygenation needs and reducing their work of breathing.

According to materials submitted by Vapotherm to the U.S. Securities and Exchange Commission, its Precision Flow series devices have been deployed in 12,000 healthcare facilities and used in the therapeutic care of over 1.5 million patients, delivering nasal cannula oxygen at flow rates of up to 8 L/min for infants and 40 L/min for adults.

According to the material, Vapotherm reported a net loss of $31 million in 2017, with total revenue of $35.6 million. Compared with 2016, its turnover increased by 18.2%, while the loss widened by 34.4%. As of September 30, 2018, Vapotherm’s revenue for the first nine months of the year amounted to $30.7 million. Approximately two-thirds of the sales revenue in both last year and this year was derived from its disposable nasal cannulas.

Vapotherm also granted its underwriters a 30-day option to purchase up to 600,000 new shares at the IPO price, excluding discounts and commissions. According to Crunchbase data, since its founding in 1999, Vapotherm has raised over $200 million in venture capital across 11 funding rounds, with the most recent being a $10 million Series D round closed this September.

Vapotherm also stated that the U.S. FDA recently approved its request to expand development of the updated version of its Precision Flow system, which is currently underway. The agency also established a new classification rule, identifying Vapotherm’s device as a high-flow nasal cannula system.

Michael McQueen, Vice President of Medical Education at Vapotherm, stated, “We are pleased that the FDA has approved our expanded indication. This approval clarifies the applicability of Hi-VNI technology in clinical practice and assures clinicians that it is safe to use as a tool for treating undifferentiated respiratory distress.”

Respiratory devices are essential equipment in intensive care units (ICUs). With advancements in medical technology and the accelerating trend of population aging, researchers predict a significant increase in their market share over the next decade.

Vapotherm, founded in 1999 and headquartered in Exeter, New Hampshire, USA, is an established company specializing in the research and development of respiratory devices. Leveraging its breakthrough patented heated humidification technology, the company has developed a series of respiratory devices known as Precision Flow. The company believes that these devices are becoming an attractive alternative to the current standard non-invasive positive pressure ventilation (NiPPV) masks.