TransMedics Group IPO: What You Need To Know

Looking to inject new life into your medtech portfolio? One company hits the market this week in an effort to keep your pulse and its pulse pumping.

The IPO

Transmedics Group, Inc. will issue 4.7 million shares on the Nasdaq under ticker TMDX, according to the firm’s S-1 filing. Priced between $15 and $17, the offering represents 24.4 percent of outstanding shares and is expected to bring in about $75 million at the midpoint of the valuation.

Lead underwriters include Morgan Stanley and JPMorgan.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

Based in Massachusetts, the medtech company sells proprietary technology to transport lungs, hearts and livers for transplant.

Its Organ Care System replicates elements of each organ’s natural physiological environment. The storage system keeps the heart beating, the lungs breathing, and the liver producing bile. These conditions are intended to prevent injury and oxygen deprivation during transport and thereby reduce organ waste and post-transplant complications.

TransMedics sees an opportunity to support 67,000 donors annually in the U.S., Canada, Australia and the European Union. In the U.S., alone, the opportunity represents about $8 billion.

Management awaits U.S. approval to expand applicability to additional transplant procedures.

The Finances

In 2018, the firm recorded $13 million in revenue leading to a net loss of $23.8 million. The year before, it earned $7.7 million for a loss of $20.8 million.

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