Notes from the EndoChoice S-1 IPO Filing

EndoChoice went public today on the New York Stock Exchange (NYSE:GI) raising $95 million. This is notable because it’s the first entrepreneur-lead company in Atlanta to go public in many years. Founded in 2008, EndoChoice is a medtech company focused on technologies and products for gastrointestinal conditions with their main innovation being an endoscopic imaging system.

Here are a few notes from the EndoChoice S-1 IPO filing:

  • Serves over 2,500 GI departments (pg. 1)
  • Fuse® system enables GI specialists to see more than twice the anatomy at any one time compared to standard, forward-viewing colonoscopes and has been clinically demonstrated to detect 69% more pre-cancerous polyps than standard colonoscopes. (pg. 1)
  • 15 million colonoscopies per year in the United States (pg. 1)
  • Revenues (pg. 2)
    2012 – $34.2 million
    2013 – $50.9 million
    2014 – $61.4 million
  • Net losses (pg. 2)
    2012 – $1.2 million
    2013 – $23.9 million
    2014 – $53.6 million
  • Accumulated deficit of $112.4 million (pg. 2)
  • Sells over 50 different products (pg. 3) –  (Note: EndoChoice sells a number of basic products and then has a proprietary endoscopic imaging system that is the real growth opportunity)
  • Manufacturing facilities in the United States, Germany, and Israel (pg. 4)
  • Acquired Peer Medical, Ltd. in 2013 for $40 million, inventor of the endoscopic imaging system (pg. 70)
  • 35 employees in research and development (pg. 71)
  • 103 employees in sales and marketing (pg. 72)
  • 418 employees (pg. 126)

I’m excited for EndoChoice and look forward to watching them grow. Congratulations to Mark Gilreath and team.

What else? What are some other thoughts on the EndoChoice S-1 IPO filing?

3 thoughts on “Notes from the EndoChoice S-1 IPO Filing

  1. Great to see this for Atlanta – obviously a good thing. But, even more importantly, it’s nice to see a company that is so prosperous providing products that truly help people and surely save many lives. Kudos to them.

  2. Clearly I do not know the strategic plan but the financials are pretty scary. Love the 2012 numbers but the explosion of losses and slowing of growth would be a red light for me unless they could explain it away. Not sure how this one makes sense unless the capital now will fuel a much, much bigger business but I have hard time figure this one out. Looks like they will be short of cash again soon. Your thoughts?

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