Nano-X Imaging IPO: Key Takeaways On X-Ray Startup For Investors

Israeli medical imaging startup Nano-X Imaging NNOX will go public on the NASDAQ with plans to sell 5.9 million shares at a price point of $16 to $18.

The company uses microelectromechanical system semiconductors for its device, which it believes can replace legacy X-Ray devices being used today.

Here are key takeaways investors should know before the IPO:

• The device from Nanox will use a simple structure without the costly cooling equipment used by legacy X-Ray devices. Current X-ray devices heat a filament to 2,000 degrees Celsisus to create an electron cloud that produces the X-ray.

• Legacy devices weigh over 4,000 pounds. The Nanox Arc weighs 154 pounds, making it much more portable.

• Nanox hopes to compete in the main X-ray categories: CT scans, mammography, fluoroscopy, angiograms and dental.

• The X-ray medical imaging market is worth an estimated $21 billion annually.

Nanox's X-Ray Play: The Nanox ARC can lower the cost of imaging hardware from millions of dollars to around $10,000.

This move could help gain market share, especially in countries where cost is a major factor.

Increasing accessibility and affordability is a major theme in the IPO prospectus.

Two-thirds of the world population have no access to medical imaging, according to the World Health Organization.

Nanox's Product Pipeline: Nanox does not have an approved product yet. In January, Nanox submitted for 510k approval with the FDA for its device.

The timeline has been delayed due to COVID-19. A new submission is expected in the third quarter of 2020.

Nano-X Imaging has deals in place for devices in 13 countries on five continents.

The company said in its IPO prospectus that it expects to deploy its first device in the first quarter of 2021.

By the end of 2021, it expects to have deployed 1,000 of these devices.

By the year 2024, Nanox believes it can have 15,000 devices around the world.

The Nanox IPO: Nano-X Imaging will raise $88.2 million in its IPO based on a midpoint price $17 per share.

Proceeds will go toward manufacturing the first 12,000 Nanox ARC devices, shipping, installation, development costs, continued research and development, regulatory clearance and sales and marketing.

Nano-X Imaging will compete against giants if it can get its product approved. Large players in the medical imaging market like General Electric Company GE, Siemens Aktiengesellschaft and Koninklijke Phillips N.V. PHG will likely be watching this IPO and company closely.