Senseonics IPO: We Are Cautious At This Early Stage

Senseonics Holdings (Pending:SENS) expects to raise at least $55.5 million in its upcoming IPO. Based in Germantown, Maryland, Senseonics Holdings is a medical technology company that designs, develops and commercializes glucose monitoring systems for use by people with diabetes.

We previewed SENS on our IPO Insights platform earlier last week. SENS currently trades on the OTCBB under symbol SENH.

SENS will offer 18.2 million shares at an expected price of $3.10 to $3.50. If the underwriters price the IPO at the midpoint of this range, Senseonics will have a market capitalization of $60 million.

SENS filed for the IPO on January 13, 2016.

Lead Underwriters: Cannacord Genuity and Leerink Partners

Underwriters: BTIG LLC, and Raymond James & Associates

Business Summary: Medical Technology Company Developing Glucose Monitoring Systems

Senseonics Holdings is a medical technology company, focused on the design, development, and commercialization of glucose monitoring systems for diabetics. Its first generation continuous glucose monitoring system (CGM), Eversense, measures glucose levels in people with diabetes.

Eversense is an implantable, long-term CGM system that is intended to accurately measure blood glucose levels on a continuous basis for up to 90 days, which is much longer than current CGM systems that can measure glucose levels for five to seven days.

The traditional method of measuring blood glucose levels involves lancing a fingertip with a fingerstick, several times per day and night, to apply a drop of blood to a test strip, which is then read by a blood glucose meter.

The company expects users to find Eversense a more convenient, less painful method than traditional fingersticks. In its European clinical trials, Eversense measured blood glucose levels for 90 days with accuracy that was comparable or superior to other available CGM systems. Senseonics intends to begin selling Eversense in several European markets in the first half of 2016. The U.S. Food and Drug Administration gave the company an investigational device exemption to begin clinical trials in the United States, which Senseonics initiated in the first quarter of 2016.