Outset Medical, based in San Jose, CA, went public on the Nasdaq exchange on Sept. 17, 2020, with a $241.7 million initial public offering (IPO). The IPO made quite a splash on the market. Nasdaq tweeted: “OM [Nasdaq trading symbol for Outset Medical] has the highest raise in 2020 of healthcare equipment and technology companies.”
In a year in which hospitals have been battered by the COVID-19 pandemic, Outset Medical was ready with a product not only needed in healthcare settings, but also in homes. The company raised $125 million earlier in 2020 to make its product commercially viable, FierceBiotech reports. On March 31, the company received US Food and Drug Administration approval to use the system in patients’ homes. The first patient was trained and used the system at home on July 13 in New Jersey.
The portable, four-wheel dialyzer Tablo unit is simple to operate. It requires an electrical outlet and tap water to make the dialysate and includes a wireless cloud connection for monitoring data. The system contrasts with other systems that require separate equipment for purifying water and generating dialysate.
The future remains to be written, but Seeking Alpha, an investment website, says Outset Medical’s Tablo could spread widely into homes, which would quadruple its market presence.
“Basically, in a time period of just 1 to 2 years, Outset Medical has grasped a $50 million run rate in a market segment pegged at $2.2 billion, as home sales were cleared just a quarter ago,” Seeking Alpha’s Value Investor column states. “If the company can see the same adoption in the home care market, it might be a $200–$300 million business in a year or two.”
Outset Medical was a winner of the 2019 KidneyX Redesign Dialysis competition. The KidneyX competition is a partnership between ASN and the US Department of Health and Human Services to support innovative strategies for tackling kidney diseases.
