ReWalk Robotics, an Israeli maker of recently-approved exoskeletons that enable paraplegics to walk, announced terms for its IPO on Tuesday. The Yokneam, Israel-based company plans to raise $50 million by offering 3.4 million shares at a price range of $14 to $16. At the midpoint of the proposed range, ReWalk Robotics would command a fully diluted market value of $191 million.
ReWalk received marketing approval in Europe at the end of 2012 and FDA clearance in June 2014. As of August 1, 2014, the company sold 81 ReWalk systems. It notes that no uniform coverage policy currently exists for its exoskeletons and they have been purchased primarily by self-payors, though the device cost can be negotiated into accident settlements.
ReWalk had revenue of $950,000 for the six months ended June 30, 2014 from $800,000 in the 1H13, a 19% increase resulting from the sale of three additional systems. Its gross loss widened 53% to $425,000, which the company attributes to manufacturing relocation and higher salary expenses, partially offset by a lower cost per unit. Operating loss widened 81% to $6.9 million as R&D expenses doubled and S&M increased by 76%.
ReWalk Robotics, which was founded in 2001 and booked $2 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol RWLK. Barclays and Jefferies are the joint bookrunners on the deal.
