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A quick fix for hemoglobin-oxygen therapeutics
Hemoglobin Oxygen Therapeutics LLC (HOTI) has filed to raise $30 million in an initial public offering of its common stock, according to an S-1 registration statement.
The company has acquired and develops oxygen transport solutions for medical purposes.
I will provide an update when we get more IPO details from management.
Company & Technology
Based in Souderton, Pennsylvania, Hemoglobin Oxygen was founded to develop medical technologies that use hemoglobin to deliver oxygen as an alternative to blood transfusions.
Management is led by co-founder and CEO Zafiris G. Zafirelis, who has been with the company since its inception in 2014 and was previously President and CEO of Biopure Corporation, a predecessor company that developed the Oxyglobin product.
The company’s products currently in development are:
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Hemopure – for human use
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Oxyglobin – for veterinary use
As of December 31, 2021, Hemoglobin Oxygen has received an investment from investors such as Peritimos Investments Limited, Ivanka, Kyprianou and others.
The Hemoglobin Oxygen Market
According to a 2019 market research report by Research Reports World, the global blood transfusion market was valued at an estimated US$5.7 billion in 2018 and is projected to reach nearly US$7.9 billion by 2024.
This equates to a projected CAGR (Compound Annual Growth Rate) of 5.5% from 2019 to 2024.
Key elements of this anticipated growth are an increasing number of surgical procedures requiring blood transfusions, increasing blood disorders and advances in technology.
Also, the sub-sector of pathogen reduction systems is estimated to account for the majority of the market and is expected to grow at a CAGR of 5.5% through 2024.
Financial Status of Hemoglobin Oxygen
The company’s most recent financial results show no revenue in 2021 and modest revenue in 2020, but significant R&D and G&A spending related to its product development efforts.
Below are the company’s financial results for the past two years:
Corporate Finance (SEC EDGAR)
As of December 31, 2021, the Company had $443,895 in cash and $15.3 million in total debt.
Hemoglobin Oxygen Therapeutics IPO details
Hemoglobin Oxygen intends to raise $30 million in gross proceeds from an initial public offering of its common stock, although the final figure may vary.
No existing shareholders have expressed an interest in purchasing shares at the IPO price, although this element could become a feature of the IPO if disclosed in a future filing.
Management says it will use the net proceeds from the IPO as follows:
We intend to use the net proceeds as follows: a minimum of $20 million to rebuild the Company’s facility in Souderton, Pennsylvania, with the remaining proceeds for general corporate expenses and working capital.
(Source)
Management’s presentation of the company’s roadshow is not available.
Regarding pending litigation, management said that as of December 31, 2021, “the Company had no pending or threatened litigation.”
WestPark Capital is the only listed bookrunner for the IPO.
Commentary on Hemoglobin Oxygen’s IPO
HOTI is seeking public capital market investment to fund its continued operational development and potential initial commercialization efforts.
The company’s products promise to provide an alternative way of providing oxygen for the body’s needs, in both humans and animals.
The market opportunities for the provision of blood transfusion technologies are significant and are expected to grow at a moderate growth rate in the coming years as an increase in surgeries and blood disorders drive the demand.
Management has not yet announced any collaborative relationships with major pharmaceutical or medical companies.
These collaborative relationships can both be an indicator of the promise of the company’s approach and provide resources and access to support a medical startup in its endeavors.
The company’s investor consortium does not include any well-known institutional venture capital firms or significant strategic investors.
WestPark Capital is the sole underwriter and there is no data on IPOs completed by the firm in the past 12 months.
When we receive more information about the IPO, such as proposed capitalization, pricing and valuation assumptions, I will provide a final comment.
Estimated IPO Price Date: To be announced.
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