Medical device co InMode raises $70m in Nasdaq IPO


The Israeli company develops light, laser, and radiofrequency-based devices for minimally invasive aesthetic and medical treatments.

Israeli aesthetic medical device company InMode has raised $70 million in its Nasdaq IPO. The company sold shares at $14, at the lower end of the range it was seeking, reflecting a valuation of $450 million, after money. The company was founded by Moshe Mizrahy, a former senior executive at Syneron, who specializes in investing in aesthetic medical device companies.

The flotation Was led by Barclays and UBS a joint book runners with Baird as co-manager. The IPO was supported by PWC Israel led by life sciences partner Omer Gavish.

InMode develops light, laser, and radiofrequency-based devices for minimally invasive aesthetic and medical treatments, using new technology developed by the company. These include treatments for the face and body, hair removal and women's health.

InMode had revenue of $100 million in 2018, almost double the figure for 2017. In the first quarter of 2019, it posted revenue of $30 million, representing growth of 46%. The company's gross profit margin in the quarter was 86%, and its net profit was $10.6 million, which compares with $6.4 million in the corresponding quarter of 2018. For 2018 as a whole, Inmode posted a net profit of $22.4 million, up from $8.8 million in the previous year. These figures are reminiscent of leading Israeli aesthetic medicine equipment companies such as Syneron and PhotoMedex at their height (PhotoMedex has meanwhile collapsed while Syneron was sold).

For the second quarter of 2019, Inmode has released unaudited preliminary results showing a continuation of the positive trend. The company attributes this to greater direct marketing activity in North America. The company expects to report revenue of up to $38.8 million, some 55% more than in the corresponding quarter of 2018. The gross profit margin is expected to come in at 86-87%, and operating profit is estimated at $15.5-15.7 million. The company is not yet able to estimate its net profit for the quarter.

At the end of the second quarter, Inmode had $82.8 million cash, up from $64.1 million at the end of the second quarter of 2018. The increase stems from the company's business activity.

Mizrahy is founder, chairman and CEO of the company, and after the IPO holds 17.6% of its shares. Dr. Michael Kreindel, the company's CTO and a co-founder, who invented some of its developments, holds 15.1%.IHVC (Israel Healthcare Ventures), headed by Hadar Ron holds a 13.5% stake. SpaMedica, owned by Canadian plastic surgeon Stephen Mulholland, holds 12.9%.

InMode was founded in 2008, and since 2010 it has launched two series of products. By the end of 2019, it expects to launch an additional series of new products.

Published by Globes, Israel business news - - on August 11, 2019

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