Medical devices company Tandem Diabetes Care Inc (NASDAQ:TNDM) has closed the previously announced secondary public offering of its common stock. The company did not immediately disclose the aim of the fundraiser. However, the FDA recently approved its larger-reservoir insulin pump that is expected to come to market later this year and the funds could support production of the product.
Tandem Diabetes Care Inc (NASDAQ:TNDM) priced more than 5 million shares and the option to purchase additional at 30% of that offered amount to cover over-allotments. Each share was priced at $11.50. The underwriters exercised the option to buy additional shares in full, leading to the offering of more than 6 million shares in total.
Tandem anticipated that the offering would bring in net proceeds of about $56.3 million. That is after covering expenses and deducting for underwriting discount and commission. Bank of America Corp (NYSE:BAC), Piper Jaffray and Deutsche Bank Securities where some of the institutions the managed the stock offering.
The FDA recently cleared Tandem’s insulin pump known as t:flex, allowing for its commercialization. The insulin pump comes with a 480-unit reservoir, which is cited as the largest capacity currently in the U.S.
With the large unit capacity, t:flex is designed for diabetes patients that require large amounts of insulin injection per day. The device is suitable for patients with type 2 diabetes and teenagers suffering from type 1 diabetes, which usually require more than 100 units of insulin a day.
Tandem Diabetes Care Inc (NASDAQ:TNDM)’s newly approved insulin device could launch in 2Q2015. The fundraiser could be aimed at providing finances for the commercialization of the device. However, the company has not clarified that. Tandem had more than $31 million in cash at the end of 2014.
In its most recent quarter, 4Q2014, Tandem Diabetes Care Inc (NASDAQ:TNDM) posted a loss of $0.78 a share, above the consensus estimate of a loss of $0.81 a share. Revenue for the quarter also topped view, coming in at $17.90 million ahead of the estimate of $17.16 million.
Tandem Diabetes Care Inc (NASDAQ:TNDM) is currently trading at $13.31 after losing 2.42%