Vapotherm Announces $58 Million IPO to Advance Precision Flow Respiratory Therapy Platform

Recently, VCBeat (WeChat official account: vcbeat) learned that Vapotherm, a U.S.-based respiratory device development company, has announced its initial public fundraising of $58 million. The company is currently developing a respiratory device known as the “Precision Flow series.”

Precision Flow can provide high-flow, heated, humidified, and oxygen-enriched air to patients being treated for conditions such as pneumonia, chronic obstructive pulmonary disease (COPD), asthma, and heart failure. Currently, the device is primarily used in hospital intensive care units (ICUs). Vapotherm stated that approximately 1,200 Precision Flow units have been sold nationwide in the United States.

Image source: Vapotherm official website

In a filing submitted to the U.S. Securities and Exchange Commission on October 19, Vapotherm stated that the approximately $58 million in proceeds raised would be primarily used to expand its sales and marketing teams, thereby strengthening its marketing efforts both in the United States and internationally. A portion of the funds will also be allocated to research and development, operations, and general corporate expenses.

It is reported that Vapotherm is planning to list on the New York Stock Exchange under the ticker symbol “VAPO”.

Vapotherm is a privately held company integrating the research and development, manufacturing, and commercialization of respiratory devices, with a mission to improve clinical outcomes, reduce total cost of care, and enhance patients’ quality of life. The company’s breakthrough technology centers on a patented heating and humidification process that enables high-flow delivery of respiratory gases. To date, Vapotherm has completed 10 rounds of financing, raising a total of approximately $166 million.

According to information released by Vapotherm, the company reported a net loss of $31 million last year, or approximately $3.20 per share. Total sales for the year amounted to $35.6 million, representing an 18.2% increase in revenue compared with 2016, while the net loss widened by 34.4%. Filing documents show that as of September 30 this year, Vapotherm reported sales of $30.7 million and a net loss of $29.6 million, equivalent to a loss of $2.54 per share. Compared with the first three quarters of 2017, the company’s sales increased by 21.8%, and its net loss rose by 34.7%.

At present, Vapotherm’s main competitors are ALung Technologies, based in Pennsylvania, USA, and the Maquet Getinge Group.

ALung Technologies primarily focuses on acute and chronic respiratory diseases, developing medical devices to assist patients with internal and external gas exchange. The company has completed seven rounds of financing, raising a total of approximately $95 million. Maquet Getinge Group, by contrast, is a well-established medical enterprise with a history spanning over 175 years.

Vapotherm, founded in 1999 and headquartered in Exeter, New Hampshire, is dedicated to the development, manufacturing, and marketing of respiratory care devices.