Second Sight Medical prices IPO at $9

A generic image of a dollar bill on top of a chart Credit: Shutterstock photo

Second Sight Medical Products, which sells camera-based retinal implants that restore partial vision to the blind, raised $32 million by offering 3.5 million shares at $9, as expected. Second Sight Medical Products plans to list on the NASDAQ under the symbol EYES. MDB Capital Group acted as the sole bookrunner on the deal.


The company's devices provide electrical stimulation of the retina to induce visual perception in blind individuals. The device is comprised of both an implantable "bionic eye" and a pair of glasses with an attached camera. The user is able to "see" patterns of light when a computer video processor transmits data to the implant. The device is currently only approved for individuals with retinitis pigmentosa, a hereditary eye disease that can cause blindness and affects an estimated 1.5 million people worldwide and 100,000 in the US. It received marketing approval in Europe in 2011 and FDA approval in 2013.

To date, Second Sight has installed 90 units. Its immediate strategy will be to gain full marketing approval in Turkey, Canada and other countries. It anticipates beginning clinical studies in the fourth quarter to evaluate the device's efficacy in treating age-related macular degeneration ( AMD ), which affects between 20 and 25 million people worldwide. It hopes to have regulatory approval for wet AMD in 2019. Four biotechs with wet-AMD indications IPO'd this year, including Pfenex (PFNX; up 35% from offer price), Ocular Therapeutix (OCUL; +27%), Avalanche Biotechnologies (AAVL; +94%) and Applied Genetic Technologies (AGTC; +66%). Another eye biotech, Inotek Pharmaceuticals ( ITEK ), recently submitted an initial filing as it develops a treatment for glaucoma, a major cause of severe vision loss.

The company notes that it has funded its operations primarily through convertible debt, and its independent accounting firm raised substantial doubt in 2012 and 2013 about its ability to continue as a going concern without this offering.


Primary shareholders include co-founder and Chairman Alfred Mann (32% post-IPO stake), Williams International (18%), Versant Ventures (13%) and CEO Robert Greenberg (3%). Alfred Mann is also the CEO of MannKind ( MNKD ).


Revenue increased 88% to $1.9 million for the nine months ended September 30, 2014. Its gross loss narrowed from $3.1 million to $260,000. Second Sight doubled its marketing spend and hired more personnel, so its loss from operations widened 15% to $15.7 million.

Shares coupled with additional shareholder rights

Shares will be coupled with free non-transferable rights to receive additional shares for investors who buy on the offering and hold for two years. The extent of these rights is based on the highest average of consecutive closing prices over any 90 calendar day period during the two years after the IPO. If the average is is $9 or less, long-term shareholders will receive additional shares on a 1-for-1 basis, at a $12 average they receive 1.5x shares, at $15 it is 1.2x and at $18 or above the rights terminate.

The article Second Sight Medical prices IPO at $9 originally appeared on IPO investment manager Renaissance Capital's web site

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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