Medical device co Inmode seeks $75m in Nasdaq IPO


Inmode had sales of $100 million last year of its aesthetic and medical treatment devices, and is profitable.

Aesthetic medicine devices company Inmode, of the group of companies invested in by Moshe Mizrahy (one of the founders of Syneron), is setting out to raise $75 million on Nasdaq. The company is believed to be aiming at a valuation of $400-500 million. The flotation is being led by Barclays and UBS a joint book runners, Canaccord Genuity as lead manager, with Baird as co-manager.

Inmode is a developer of light, laser, and radiofrequency-based devices for minimally invasive aesthetic and medical treatments, using new technology developed by the company.

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 chairman and CEO of the company, and holds 20% of its shares. IHVC (Israel Healthcare Ventures), headed by Hadar Ron, which has invested in several of Mizrahy's ventures, holds a 15.8% stake. SpaMedica, owned by Canadian plastic surgeon Stephen Mulholland, holds 15%. Dr. Michael Kreindel, the company's CTO and a co-founder, who invented some of its developments, holds 17%.

Inmode was founded in 2008, and since 2010 it has launched six products. By the end of 2019, it expects to launch two new series of products for aesthetic medicine.

Inmode states in the prospectus it filed with the US Securities and Exchange Commission last week: "We are focused on establishing and using clinical evidence to support and broaden our marketing claims and drive customer awareness and acceptance of our products. Traditionally, the aesthetic solutions market has relied heavily on marketing efforts and 'before-and-after' pictures in an attempt to distinguish products. We believe our focus on establishing clinical evidence for the efficacy of our products has been important for adoption by our surgically-trained customers, who are accustomed to seeing extensive clinical data in their non-aesthetic practices."

Published by Globes, Israel business news - - on July 14, 2019

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