This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IPO Watch: 2011

Kips Bay Medical

IPO Filing Date: Apr. 8. 2010

Expected IPO Date: Feb. 10, 2011

Amount of Proceeds Sought: ~$25 million

Expected Offering Price: $8 to $10

Expected Number of Shares to Be Sold: ~ 2.75 million

Use of Proceeds: To seek regulatory approval to market its eSVS Mesh product in the U.S. and overseas. The company said the product can improve bypass procedures for heart patients.

Expected Ticker Symbol: KIPS (KIPS) (NASDAQ)

Lead Underwriters: Rodman & Renshaw (RODM) and Newbridge Securities

Co-Managers: Caris & Company

About the Company: Kips Bay Medical is a medical device company currently in development stage.

The company is focusing on developing, manufacturing and commercializing its eSVS MESH product for coronary artery bypass surgeries. The company said the product can improve the long-term results of these surgeries.

The company began shipping its eSVS MESH in European Union markets in Jun. 2010 and the United Arab Emirates in Oct. 2010, but hasn't generated significant revenues yet. The U.S. Food and Drug Administration is currently reviewing Kips' application for the product. If granted, Kips Bay would be able to begin U.S. clinical trials for the project.

The company expects enrollment in the clinical trials to begin in the first half of 2011.

Kips Bay experienced net losses of $3.3 million and $10.1 million in the year ended Dec. 31, 2009 and the nine months ended Oct. 2, 2010, respectively. The company's net loss for the nine months ended Oct. 2 included a non-cash charge of $2.3 million due to a modification in an investor stock purchase option and a $5 million charge in connection with its first milestone payment to Medtronic (MDT), one year after the first sale of its eSVS MESH. The two have an intellectual property agreement over the product.

One of the biggest risks about Kips Bay is its limited history. The company expects more losses in the future.

Competitors: Kips Bay said there are at least two companies that develop mesh devices for coronary procedures, but none of their products directly compete with Kips'. These companies include Swiss company Alpha Research and Germany company B. Braun.

IPO Scorecard:

Actual IPO Date: Feb. 10

Actual Proceeds Raised: $17 million

Actual Offering price: $8

Actual Number of Shares Sold: 2.1 million

First Day Closing Price: $7.93

IPO First Day Return: -0.9

>>Search for Highest Dividends by Rate or Yield
More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to: tips@thestreet.com.
Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
9 of 9

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ZA $1.40 -0.72%
AAPL $112.12 -0.20%
FB $89.53 -0.40%
GOOG $616.31 0.32%
TSLA $251.20 1.40%

Markets

Chart of I:DJI
DOW 16,465.59 +114.21 0.70%
S&P 500 1,959.75 +10.89 0.56%
NASDAQ 4,769.43 +19.4510 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs