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PROCEPT BioRobotics launches $175 million stock offering

Published 28/10/2024, 21:30
PRCT
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SAN JOSE, Calif. - PROCEPT BioRobotics Corporation (NASDAQ: PRCT), a company specializing in surgical robotics for urology, has initiated a public offering of common stock valued at $175 million. In addition, a selling stockholder is expected to give underwriters a 30-day option to buy up to an extra $26.25 million in shares. The company has clarified that it will not receive any proceeds from the sales made by the selling stockholder.

The completion and terms of this offering are subject to market conditions, and there is no certainty regarding the timing or the final terms. BofA Securities, Piper Sandler, and Morgan Stanley are serving as the joint book-running managers for the offering.

The offering follows a shelf registration statement filed on August 1, 2023, with the U.S. Securities and Exchange Commission (SEC), and will only be conducted through a prospectus supplement and the accompanying prospectus. The preliminary prospectus supplement will be available on the SEC's website and from the book-running managers.

PROCEPT BioRobotics is known for developing the AQUABEAM® and HYDROS™ Robotic Systems, with the latter being an AI-powered technology that delivers Aquablation therapy for men with lower urinary tract symptoms due to benign prostatic hyperplasia (BPH), a common prostate condition. The company has over 150 peer-reviewed publications supporting the clinical benefits of its Aquablation therapy.

The press release also contains forward-looking statements regarding the proposed offering, which involve risks and uncertainties that could cause actual results to differ from those anticipated. These include market conditions and other factors detailed in the company's periodic SEC filings and the preliminary prospectus supplement.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where it would be unlawful without registration or qualification under the securities laws of such jurisdiction.

The information provided is based on a press release statement from PROCEPT BioRobotics.

In other recent news, PROCEPT BioRobotics has reported a significant revenue increase of 66% in the third quarter of 2024, with total revenue reaching $58.4 million. This growth has been bolstered by strong demand for its robotic systems, particularly the HYDROS Robotic System, which contributed to 80% of new sales. The company's installed base in the U.S. also grew by 64%, and international revenue saw an 86% increase, with significant sales in the U.K.

Furthermore, PROCEPT's gross margins reached a record high of 63.2%, and net losses improved, indicating a clear path to profitability. The company also announced a new clinical trial for Aquablation therapy, a promising development in its product offerings.

Despite facing challenges like saline shortages and hurricane disruptions, which affected procedure volumes, PROCEPT expects full-year 2024 revenue to be between $222.5 million and $223 million. The company foresees a growth of approximately 63% to 64% in revenue and plans to sell around 186 robotic systems by the end of 2024.

These recent developments highlight PROCEPT BioRobotics' successful execution of its growth strategy and its focus on expanding its market presence in the treatment of prostate cancer.

InvestingPro Insights

PROCEPT BioRobotics' (NASDAQ: PRCT) recent decision to initiate a public offering of common stock aligns with its strong market position and growth trajectory. According to InvestingPro data, the company has demonstrated impressive revenue growth, with a 73.74% increase in the last twelve months as of Q2 2024. This robust growth rate underscores the increasing adoption of PROCEPT's innovative Aquablation therapy and AQUABEAM® Robotic System.

Despite the company's rapid expansion, InvestingPro Tips indicate that PROCEPT is not currently profitable and analysts do not anticipate profitability this year. This context helps explain the company's decision to raise additional capital through the public offering, potentially to fund further research, development, and market expansion of its robotic systems.

The stock's performance has been noteworthy, with InvestingPro data showing a remarkable 163.59% price total return over the past year. This significant increase reflects investor confidence in PROCEPT's technology and market potential in the urology space.

For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for PROCEPT BioRobotics, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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