The wearable cardiac monitor and defibrillator developer Kestra Medical Technologies aims to raise about $154 million by going public on the Nasdaq, with plans to greatly scale up its commercial operations.
The Bain Capital portfolio company previously raised $196 million in a July 2024 financing round, which was co-led by Andera Partners, Ally Bridge Group, Longitude Capital and Omega Funds. Additional backers also included Bain, T. Rowe Price, Eventide Asset Management, Gilmartin Capital and Endeavour Vision.
According to Kestra’s filed prospectus, its vest-like Assure cardioverter defibrillators have been worn by more than 17,000 patients at risk of a sudden cardiac arrest since its launch in August 2022, through prescriptions from more than 550 hospitals in the U.S.—part of what it describes as a $10 billion potential market.
The system includes a remote monitoring platform that feeds ECG data back to providers and can connect to a patient’s smartphone app. Designed to be worn nearly 24 hours a day, the Assure undergarment has no adhesives and embedded, cushioned sensors designed for both men and women.
The company’s IPO aims to sell 10 million common shares under the ticker KMTS, and priced between $14 and $16 apiece—with underwriters given the option to buy up to an additional 1.5 million shares. Kestra said that following the offering, Bain Capital will own about 52.8% of the company.
Earlier this week, Kestra announced that it had appointed Al Ford as its new chief commercial officer, and Neil Bhalodkar as VP of investor relations.
Ford has previously served as CCO of Axonics (recently bought by Boston Scientific) and Cardiac Science Corporation while Bhalodkar formerly helped lead investor relations at Axonics as well as Inari Medical (recently bought by Stryker).
With the new proceeds, Kestra said it plans to spend about $80 million building up its sales teams, and about $15 million on R&D.
For the six months leading up to October 31, 2024, the company reported about $27.5 million in revenue—about the same amount as the 12 months leading up to April 30 of that year, at the end of its 2024 fiscal calendar. It also recorded net losses of $40.9 million and $94.1 million for those time periods, respectively.