Insulin Pump Maker Tandem Diabetes Plans to Raise $100M Through IPO
Joining a procession of life sciences IPOs, San Diego’s Tandem Diabetes Care has registered to raise about $100 million through an initial public offering, according to a regulatory filing yesterday. The company plans to trade on the Nasdaq market under ticker symbol TNDM.
Tandem Diabetes, founded in 2006 to develop an innovative insulin pump designed as a consumer friendly “smart” device, is the eighth life sciences company in San Diego this year to publicly disclose its IPO plans.
Generally speaking, the eight account for roughly a fifth of the 39 U.S. life sciences IPOs so far this year. The exact number of total IPO filings is uncertain, however, since new regulations under the JOBS Act make it possible for companies to submit their filings confidentially to the Securities and Exchange Commission for review. San Diego-based Biocept, for example, submitted its IPO confidentially in August before unsealing its plans publicly last month.
Six other San Diego life sciences companies have gone public this year—Conatus Pharmaceuticals (NASDAQ: CNAT), Receptos (NASDAQ: RCPT), Ambit Biosciences (NASDAQ: AMBI), Sophiris Bio (NASDAQ: SPHS), Evoke Pharma (NASDAQ: EVOK), and Fate Therapeutics (NASDAQ: FATE)
In its filing, Tandem Diabetes says it has developed its t:slim insulin pump for a market that consists of roughly 6 million insulin-dependant people in the United States.
Tandem Diabetes says its t:slim device, which resembles a smartphone, is the first insulin pump to feature a high-resolution color touchscreen and is the slimmest and smallest insulin pump on the market. The device uses a miniaturized pumping mechanism that draws insulin from a flexible bag in a replaceable cartridge. Conventional insulin pumps rely on a plunger-type mechanism. The company also developed easy-to-navigate software and a Web-based data management application that makes it easier for patients to track their insulin use.
The company began selling the t:slim in the third quarter of 2012, and reported nearly $2.48 million in sales for the year. Over the first six months of this year, Tandem Diabetes had accumulated sales of nearly $11 million, with a gross profit of more than $2.4 million.
But the company said it still operates at a substantial net loss, and expects that will continue for at least the next several years. Tandem Diabetes reported a net loss of almost $26.5 million for the first six months of this year, and disclosed it has an accumulated deficit of $132.5 million.
Tandem Diabetes has raised about $88.7 million in venture funding from firms like Delphi Ventures, which now holds a nearly 27 percent stake, Domain Associates (more than 26 percent), TPG Biotechnology Partners (over 20 percent, HLM Venture Partners (more than 11 percent) and Kearny Venture Partners (over 6 percent).