Penumbra clears $125m in IPO

Penumbra (NYSE:PEN) yesterday said the net proceeds from its just-closed initial public offering were roughly $124.5 million, including an underwriters over-allotment worth $18 million.

Alameda, Calif.-based Penumbra floated 4.6 million shares at $30 apiece, for gross proceeds of $138 million. PEN shares opened at $40 each Sept. 18, peaking at $42 in their 1st day of trading before subsiding to a $41.30 close that day. The stock closed yesterday at $41.67, up 3.3%.

Penumbra priced the IPO last week, saying it planned to raise $120 million by floating 4 million shares at $30 apiece, after setting the range at $95 million to $106.4 million, or $100.7 million at the midpoint. Penumbra estimated a $115 flotation when it registered the offering in August.

Co-founder & CEO Adam Elsesser told MassDevice.com last week that Penumbra, which makes devices for the peripheral vascular and neurovascular markets, has raised $114 million to date, from friends, family and some institutional investors – but no venture capital shops.

“We did that very particularly, very purposely. When we started Penumbra we had a vision to build Penumbra into a company that was beyond 1 product or 2 products, but into a company that as it grew continued or in effect accelerated our ability to innovate,” Elsesser said, noting that Penumbra began its 10th year in 2014 by raising a round from institutional investors led by Fidelity.

Penumbra views the IPO as the next step in its growth, rather than as an exit in and of itself, he added.

“We think it will allow us to continue to drive innovation even faster, and hopefully ultimately help a broader group of patients with our technologies. We’re really exited about the work we’ve done for the last 10 years, but to very candid, equally or more excited about the work we can do and plan on doing over the next 10 years and beyond,” Elsesser said.

The company reported sales of $125.5 million last year, up 41.3% over 2013. Founded in 2004, Penumbra said it employs about 1,000 workers.

Penumbra launched its 1st device for neurovascular access in 2007 and put the 1st aspiration thrombectomy device on the U.S. market in 2008.

In May, the company won 510(k) clearance from the FDA for its Ace64 aspiration thrombectomy device, which it claims as the largest-lumen aspiration thrombectomy device on the market.

The market for its products in Europe and the U.S. is was about $1.4 billion last year, the company estimated.

“While reliable 3rd-party data is not available for markets outside the United States and Europe, we believe that there is a substantial additional market for our neuro and peripheral vascular products in the rest of the world,” Penumbra said in a regulatory filing.

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