San Diego’s Tandem Diabetes Sets IPO Terms
San Diego’s Tandem Diabetes Care set the terms for its IPO yesterday, offering more than 7.1 million shares of its stock at a price between $13 and $15 a share, according to an amended regulatory filing.
The medical device maker was not among the companies expected to go public this week, according to a list of 15 anticipated IPOs (including Twitter) issued yesterday by Renaissance Capital, a Connecticut firm that provides institutional research about newly public companies.
With innovative insulin pump technology housed in a smartphone-like device, Tandem Diabetes says its goal is to become the leading provider of insulin pump therapy. The market, however, already has many established players, including Minneapolis-based Medtronic; Bedford, MA-based Insulet; Switzerland’s Roche; New Brunswick, NJ-based Johnson & Johnson; South Korea’s Sooil; and Japan’s Nipro.
At the mid-point of the company’s price range, Tandem Diabetes estimates it would receive net proceeds of about $90.1 million from the IPO, or $104 million if underwriters fully exercise their option to purchase more than 1 million additional shares. Trading in Tandem Diabetes would take place on the Nasdaq market under ticker symbol TNDM.
Tandem Diabetes initially filed confidentially on Aug. 12, according to Renaissance Capital. The company’s filing became public on Oct. 7. The company was founded in 2006 and has raised a total of nearly $89 million in venture funding from firms that include Delphi Ventures, Domain Associates, TPG Biotechnology Partners, HLM Venture Partners, and Kearny Venture Partners.
As I reported last month, Tandem Diabetes says its t:slim device is the first insulin pump to feature a high-resolution color touchscreen. 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. Tandem Diabetes also developed easy-to-navigate software and a Web-based data management application that makes it easier for patients to track their insulin use.