Tactile Systems Technology Inc., a Minneapolis-based company that develops therapeutic medical technologies to treat chronic medical conditions, has filed a registration statement to raise up to $86.3 million in an initial public stock offering.
Tactile Systems, which does business as Tactile Medical, makes pneumatic compression devices for treatment of lymphedema (which generally results in swollen tissue associated with a compromised lymphatic system) and venous leg ulcers.
The company's products aim to deliver cost-effective long-term treatment of chronic diseases in a home health setting, it said in a filing with the Securities and Exchange Commission.
For the year-ended Dec. 31, 2014, the company had revenue of $47.7 million and net income of $2.1 million. Through the first nine months of 2015, revenue was $41.7 million, a 40 percent increase from the first nine months of 2014. Net income for the first nine months of 2015 was $134,000.
The company, founded in 1995, plans to use proceeds from an IPO to expand its sales and marketing, product development and reimbursement and clinical activities. Tactile Medical also wants to pay accrued dividends to Series A preferred stock holders.
If Tactile Systems completes its IPO, it would be the first Minnesota-based public company since Plymouth-based Entellus Medical to complete an IPO. Entellus' IPO was on Jan. 29, 2015.
In 2015, the health care sector dominated U.S. IPO activity, with 46 percent of the 170 IPOs in health-related fields, according to research from Renaissance Capital.