Company: Avadim Health, Inc. (AHI)
Exchange: NASDAQ Global
Proposed Symbol: AHI
CEO: Stephen Woody
No. of Employees: 229 (as of 9/30/19)
Money to be raised in IPO (Offer Amount): 92 mm
Price Range Per Share: $14-$16
No. of shares to be sold in IPO (Shares Offered): 5 mm
Shares Outstanding: 22.9 mm
Estimated Market Cap: 320.7 mm – 366.7 mm
Expected IPO Date: 1/30/20
State of Inc: DE
Prospectus Summary from S-1
“We are a high-growth, healthcare and wellness company that sells topical products to improve immune health, neuromuscular health and skin barrier health. Using our proprietary platform, which we call our Bionome Engineered Platform, we develop products that target the institutional care and self-care markets. We believe there is significant unmet global demand for non-prescription options, such as our products, as an alternative to drugs that are more expensive or potentially addictive and can have long-term detrimental implications for our health and society. Our mission, “Discovering New Ways to Care,” represents our strong belief that, by harnessing the innate power of the skin’s ecosystem, we can improve the health of individuals with products that address current societal challenges, including access to care, affordability, drug resistance and addiction.”
Underwriters listed in S-1
Lead Underwriters:
Oppenheimer & Co Inc.
Maxim Group LLC
Representatives:
Raymond James & Associates, Inc.
Suntrust Robinson Humphrey, Inc.
Other Notes
- In 2013, Avadim Health, Inc. (AHI) took control of Avadim LLC, a liability company based out of North Carlina
- Avadim Health, Inc. (AHI) is a healthcare and wellness company aiming to sell products that improve skincare and neuromuscular health
- Avadim is very focused on skincare products that will ultimately benefit the whole body
- Avadim looks to target self-care as well as provide alternatives to addictive prescription drugs
- All products are non-prescription based
- Avadim’s products were used in more than 250 hospitals nationally (Nov. 2019)
Financial Notes
- During 2017-2018, net revenues increased from 10.8 mm to 29 mm, respectively
- Avadim reported an annual growth rate of 168% from 2017-2018
- 2018-2019 revenues grew another 73% (19.8 mm to 34.4 mm)
- The healthcare company has not shown very appealing numbers in the losses column over the past years. See Avadim Health, Inc. (AHI) net losses below:
- 2017: 29.2 mm
- 2018: 49.5 mm
- 2019: 31 mm
Personal Thoughts
After reviewing Avadim’s S-1, I am very excited to see how this healthcare company preforms this year. In 2019, the healthcare sector out preformed the S&P 500 Index once again producing returns up to 9.8%. Remember Applied Therapeutics (APLT), a company focused on targeting neuromuscular health? Entering the market at $8.04 a share on 5/19/19 and now sitting at a share price of $24.72, APLT has returned a substantial gain of 206.47% since its IPO date. With Avadim focusing on similar healthcare niches, the IPO has the potential to produce similar astronomical returns for patient investors. All in all, I see this sector continuing its domination over the IPO market in 2020, as it has proven to be one of the most consistent sectors over the past decade.