SurgiVision (NASDAQ:SRGV) is a biotechnology company that makes medical devices which allow surgeons to conduct minimally invasive brain and heart surgeries. SurgiVision's products use Magnetic Resonance Imaging (MRI) guidance to help surgeons perform complex surgeries without conducting an open surgery.
However, as of its IPO, none of the company's products are ready for the market. The company's most advanced product, ClearPoint, which provides surgeons guidance for brain surgery, is pending 510(k) regulatory approval. The company's other two products are still in the development phase.
There is a fairly high demand for such types of surgery. Patients desire them since they leave a much smaller scar, decrease the chance of infection, decrease the recovery time, and mitigate the trauma of a full scaled surgery. While doctors are currently able to conduct minimally invasive surgeries without MRI guidance, the procedures are often very complicated, last longer than normal surgeries, and are very risky. This means that in order for the surgery to be properly conducted, the surgeon must be well trained and experienced.
The company's initial public offering is expected to occur during the week of July 26th on the NASDAQ. The initial price range is $9-$11 which is lower than the original range of $13-$15. The company will offer 2.5M shares, making the total deal approximately $25M. The lead underwriters for the deal are Conaccord Genuity and Rodman & Renshaw.
As of fiscal year 2009, SurgiVision has not been cash flow positive since none of its main products have made it to the market. In 2009, the company's net loss was $4.3M. The company had also accumulated a debt $38.5M due to its high research and development costs associated with developing a biotechnological product.