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A quick look at BIOLIFE4D Corporation
BIOLIFE4D Corporation (SAVU) (SAVUW) has applied to raise $17.5 million in an initial public offering of its common stock and warrant units, according to an S-1 registration statement.
That develops synthetic heart organs for human transplantation purposes.
As BIOLIFE4D is still in the pre-clinical R&D phase, it needs to go through the full clinical trial process and FDA approval, leaving management with a very long way to go and raising significantly larger amounts of capital if it is successful.
When we learn more details about the IPO, I’ll give a final opinion.
BIOLIFE4D overview
Based in Buffalo Grove, Illinois, BIOLIFE4D was founded to develop human heart replacement organs using 3D printing techniques in combination with the patient’s own cells, thereby reducing the risk of rejection.
Management is led by Chairman and CEO Steven Morris, who has been with the company since November 2016 and was previously President of Inland Midwest Corporation, a boutique medicine supplier to various medical companies in the United States
Still in the R&D phase, the company is attempting to create a proof-of-concept “mini-heart” through its bioprinting process.
BIOLIFE4D has booked a fair market value investment of $6.8 million from investors as of March 31, 2022.
Market and competition of BIOLIFE4D
According to a 2021 market research report by Verified Market Research, the global artificial heart market was estimated at US$1.7 billion in 2020 and is projected to reach US$4.9 billion by 2028.
This equates to a projected compound annual growth rate (CAGR) of 13.9% from 2021 to 2028.
Key factors behind this expected growth are increasing demand from an aging population with cardiovascular disease and advances in artificial heart technologies.
Also, the market will require the further development of a technologically advanced infrastructure capable of supporting its growth, along with the potential for high associated costs.
Key competing vendors offering or developing related treatments include:
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Thoratec Corporation
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SynCardia systems
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Circtec Medical Systems
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BiVACOR
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MyLVAD
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THE CAR FLOOR MAT
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Jarvik heart
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dept
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AbioMed
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Cleveland heart
Financial Status of BIOLIFE4D Corporation
The company’s recent financial results are typical of a development stage medical device company as they reflect significant G&A and R&D expenses related to its development efforts.
Below are the Company’s financial results for the last two calendar years:
Operating Invoice (SEC EDGAR)
As of March 31, 2022, the Company had $442,297 in cash and $1.5 million in total debt.
BIOLIFE4D Corporation IPO details
BIOLIFE4D intends to raise $17.5 million in gross proceeds from an initial public offering of its units comprised of common stock (SAVU) and warrants (SAVUW), although the final figure may vary.
The Company is offering a warrant to purchase one share at an undisclosed exercise price. Usually the strike price is at some premium to the IPO price (e.g. 120%) or sometimes the IPO price.
No existing shareholder has expressed an interest in buying shares at the IPO price.
Management says it will use the net proceeds from the IPO as follows:
Proposed IPO proceeds (SEC EDGAR)
(Source)
Management’s presentation of the company’s roadshow is not available.
Regarding pending litigation, management said the Company is a defendant in a breach of contract by noteholders totaling $600,000.
The sole public bookrunner for the IPO is Aegis Capital Corp.
Comment on the IPO of BIOLIFE4D
SAVU is seeking public capital investment to fund further research into its artificial heart technologies.
The company is attempting to create a proof-of-concept “mini heart” through its bioprinting process.
The artificial heart device market opportunity is large and is expected to grow at a considerable rate in the coming years.
However, large medical device companies are active in this area and are undoubtedly investing in the development of new cardiac technologies.
Management has not announced any collaborative partnerships with major medical technology companies.
The Company’s syndicate of investors does not include any well-known institutional medical device venture capital firms or strategic investors.
Aegis Capital Corp. is the sole underwriter and the IPOs it has managed over the last 12 months have generated an average negative return (78.8%) since its IPO. This is a lowest performance for any major underwriter over the period.
Since BIOLIFE4D is still in the pre-clinical research and development phase, it has to go through the entire clinical trial process and FDA approval, leaving management with a very long way to go.
When we learn more details about the IPO, I will provide an update.
Estimated IPO Price Date: To be announced.
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