Wearable heart device company to go public, raise up to $155M
Kestra Medical Technologies, a Washington-based medtech company known for its wearable heart monitors and defibrillators, is going public on the Nasdaq Global Select Market under the ticker symbol KMTS.
The company intends to sell 10 million common shares priced somewhere between $14 and $16 per share. Underwriters also have an over-allotment option to offer an additional 1.5 million common shares if necessary.
In total, Kestra predicts that this initial public offering will earn the company somewhere between $133 million and $155 million. Its plan is to use these proceeds to hire new sales representatives and clinical care specialists in addition to investing heavily in its supply chain and revenue cycle management capabilities.
BofA Securities, Goldman Sachs and Piper Sandler are acting as lead bookrunners for the proposed offering, and Wells Fargo Securities and Stifel are acting as bookrunners. Wolfe | Nomura Alliance, meanwhile, is serving as the co-manager for the proposed offering.
Kestra’s trademark offering is its Assure wearable cardioverter defibrillator (WCD), a vest-like system designed to protect users from sudden cardiac arrest.
“We are a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent and connected,” Kestra said in its filing with the U.S. Securities and Exchange Commission. The company also highlighted the “significant clinical and functional advantages” of Assure, noting that the device has already been worn by more than 17,000 heart patients as of Jan. 31.
“For over 20 years, WCDs have been used to protect patients at elevated risk of sudden cardiac arrest,” Kestra added. “However, until the Assure WCD received Food and Drug Administration (FDA) approval in July of 2021, the market was limited to a single solution. Since the approval of the first WCD in 2001, global WCD revenues have grown to $1.3 billion in 2023, with approximately 85% of the revenues generated in the U.S based on our analysis of third-party claims data and estimated average WCD wear prescription lengths and average reimbursement rates in the U.S. and in select international markets derived from industry data and internal estimates.”
In July 2024, Kestra raised $196 million from several investors. Andera Partners, Ally Bridge Group, Longitude Capital and Omega Funds all led the way, followed by additional investments from Bain Capital, Endeavour Vision and others.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.