Healthcare companies raised nearly half a billion dollars among four $100M+ IPOs the past two weeks, proving that the sector still rates at or near the top of investors’ favorite choices for startups with high hopes.

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Here’s all the action starting with this past week.

Week of April 1, 2019:

1) Included among recent SEC filings for initial public offerings, TransMedics Inc., a medical device company that provides a system for organ transplants, registered up to $86 million worth of common stock.

The Andover, MA-based medical technology firm has developed a product that it believes is a better way to preserve organs destined for transplantation. It says its portable Organ Care System replicates almost-in-the-body conditions for donor organs outside the body which avoids the risks associated with standard-of-care cold storage. It perfuses the donor organ with warm, oxygenated, nutrient-enriched blood which enables a heart to keep beating, a lung to continue breathing and a liver to continue producing bile while waiting to be placed into the recipient patient.

The company was founded in 1998 and booked $13 million in sales for the 12 months ended December 31, 2018. It plans to list on the Nasdaq under the symbol “TMDX.” Morgan Stanley and J.P. Morgan are the joint bookrunners on the deal. No pricing terms were disclosed.

2) Elsewhere, Silk Road Medical Inc., which sells medical devices to treat carotid artery disease, raised $120 million by offering 6 million shares at $20, the high end of the range of $19 to $20. Sunnyvale, CA-based Silk Road Medical lists on the Nasdaq under the symbol “SILK.” J.P. Morgan and BofA Merrill Lynch acted as lead managers on the deal.

Silk Road calls itself a medical device company “focused on reducing the risk of stroke and its devastating impact.” It believes a key to stroke prevention is minimally-invasive and technologically advanced intervention to safely and effectively treat carotid artery disease, one of the leading causes of stroke. The company says it has pioneered a new approach for the treatment of carotid artery disease called transcarotid artery revascularization, or TCAR, which it seeks to establish as the standard of care. Shares closed the week up a whopping 79% at $35.80.

3) NGM Biopharmaceuticals Inc., a Phase 2 biotech developing therapies for NASH and type 2 diabetes, raised $107 million by offering 6.7 million shares at $16, the high end of the range of $14 to $16.

Keying off some encouraging preliminary Phase 2 data for NASH and a longstanding collaboration with Merck that has generated hundreds of millions of dollars in research support. They’ll use the new money to follow through on their ongoing Phase 2 for NGM282, gambling that they can continue to impress investors with the data as they pursue their grand ambition of winning an OK for a best-in-class NASH drug. They’ll continue to reap data from the Phase 2 this year as researchers track results in more patients, then shift to a Phase 2b that reads out in 2020, which they hope will set the stage for a Phase 3 pivotal program. Merck agreed to hand over another $20 million of research support to extend their alliance by an extra 2 years.

NGM lists on the Nasdaq under the symbol “NGM.” Goldman Sachs, Citi and Cowen acted as lead managers on the deal. Shares closed the week off 6% at $15.10.

4) And Brainsway Ltd., which sells medical devices that use magnetic stimulation to treat depression and OCD, announced terms for its IPO. The Jerusalem, Israel-based company plans to raise $30 million by offering 2.5 million ADSs at a price of $11.94, the as-converted last close of its shares listed on the TASE ($5.97), at two shares per ADS. At $11.94, Brainsway would command a fully diluted market value of $129 million.

Brainsway bills itself as a commercial stage medical device company focused on the development and sale of non-invasive neuromodulation products using their proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology for the treatment of major depressive disorder (MDD) and obsessive-compulsive disorder (OCD), for which it has received marketing authorization from the FDA.

Brainsway was founded in 2003 and booked $16 million in sales for the 12 months ended December 31, 2018. It plans to list on the Nasdaq under the symbol “BWAY.” Cantor Fitzgerald, Raymond James and Oppenheimer & Co. are the joint bookrunners on the deal.

Week of March 25, 2019:

1) Glucose Biosensor Systems (greater China) Holdings Inc., which is developing a salivary glucose monitoring system for diabetes in China, withdrew its plans for an initial public offering on Thursday. It had filed with the SEC for a best-efforts initial public offering under Regulation A+. The NYC-based company had planned to raise a minimum of $9 million and a maximum of $25 million by offering between 0.8 million and 2.1 million shares at a price of $12. With the maximum offering at the proposed price, Glucose Biosensor would have commanded a market value of $144 million.

The company was founded in 2016 and had planned to list on the Nasdaq under the symbol “GBSG.” Cuttone & Co. was set to be the sole bookrunner on the deal. GBSG bills itself as a development-stage medical device company with licensed rights to commercialize a novel “smart” biosensor salivary glucose monitoring system in the China Region.

GBSG is currently a wholly-owned subsidiary of Life Science Biosensor Diagnostics Pty Ltd., an Australian company that owns the worldwide intellectual property rights to the biosensor platform from University of Newcastle, Australia.

2) Guardion Health Sciences Inc., which sells medical food and devices for retinal diseases, lowered the proposed deal size for its upcoming IPO. The San Diego, CA-based company now plans to raise $6 million by offering 1.5 million shares at a price of $4, where it would command a market cap of $95 million. The company originally filed in January to raise $8.7 million by offering 2.5 million shares at a price range of $3 to $4.

Guardion Health is a specialty health sciences company formed to develop, formulate and distribute condition-specific medical foods with an initial medical food product on the market under the brand name Lumega-Z that replenishes and restores the macular protective pigment. A depleted macular protective pigment is a modifiable risk factor for retina-based diseases such as age-related macular degeneration (AMD), computer vision syndrome and diabetic retinopathy.

Guardion Health Sciences was founded in 2009 and booked $1 million in sales for the 12 months ended December 31, 2018. It plans to list on the NYSE under the symbol “GHSI.” WallachBeth Capital and WestPark Capital are the joint bookrunners on the deal.

3) Precision BioSciences Inc., an early-stage biotech developing off-the-shelf CAR T cell cancer therapies, raised $126 million by offering 7.9 million shares at $16, the midpoint of the $15 to $17 range. At pricing, the company will command a fully diluted market value of $870 million.

The company focuses on gene-edited CAR-T cell therapies for cancer. Its ARCUS tech platform is a fully synthetic enzyme much like a homing endonuclease. A homing endonuclease is a naturally-occurring DNA-cutting enzyme found in the genomes of many eukaryotic lifeforms. ARCUS is an improvement on nature, with high specificity that can be customized to recognize a DNA sequence inside any target gene.

Durham, NC-based Precision BioSciences lists on the Nasdaq under the symbol “DTIL.” J.P. Morgan, Goldman Sachs, Jefferies and Barclays acted as lead managers on the deal. Shares closed this past week down 8% from its IPO price at $14.74.

4) And Genfit SA, a Phase 3 biotech developing therapies for NASH, raised $135 million by offering 6.65 million ADSs at $20.32 per ADS. It had previously filed to raise $132 million by offering 5.0 million ADSs at $26.33.

Genfit describes itself as a late-stage clinical biopharmaceutical company dedicated to the discovery and development of innovative drug candidates and diagnostic solutions targeting metabolic and liver-related diseases. Genfit is evaluating its most advanced drug candidate, elafibranor, in a pivotal Phase 3 clinical trial as a potential treatment for nonalcoholic steatohepatitis, or NASH, and as a potential treatment for primary biliary cholangitis, or PBC.

Loos, France-based Genfit lists on the Nasdaq under the symbol “GNFT.” SVB Leerink and Barclays acted as lead managers on the deal. Shares closed last week up 19% from its IPO price at $24.11.

(Some IPO content provided by Renaissance Capital LLC)

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