Leidi.com Lei Jianping August 4th
Weight-loss drug maker Allurion Technologies recently merged with special-purpose company Compute Health Acquisition Corp and listed on the New York Stock Exchange.
The transaction has gross net proceeds of approximately $100 million, above the $70 million minimum closing condition.
Sources of funding include private equity investment (“PIPE”) led by RTW Investments, equity investment from Medtronic and former Medtronic CEO and non-dilutive synthetic royalty financing provided by Chairman Omar Ishrak Senior Secured Term Loans from certain entities employing RTW Investments as investment manager and from affiliates of Fortress Investment Group.
The funds will be used to fuel Allurion's growth plans.
According to the plan, the combined company is valued at $500 million. However, the performance of Allurion after its listing was unsatisfactory, and the stock price continued to fall after the transaction. As of today, the company’s stock price fell to $5 again, a drop of 31%. The company’s market value is about 213 million U.S. dollars.
According to reports, there are about 650 million obese patients in the world, and more than 600,000 obese patients receive bariatric surgery every year. Allurion is working to eradicate obesity, producing a swallowable, non-surgical intragastric balloon for weight loss and providing other services to help patients lose weight.
Specifically, the Allurion Balloon, a swallowable, non-surgical weight-loss intragastric balloon that can be compressed into a small capsule connected to a thin catheter that, once swallowed, can be inflated with 550ml of liquid , to induce satiety and help control hunger.
This whole process only takes 15 minutes. After 16 weeks, the balloon is emptied of fluid through a valve that opens automatically and is expelled with feces.
Allurion's claimed effects
Allurion claims that the effect is good, but for investors, this still needs time to prove.
Since its establishment, it has received multiple financings, among which, in July 2017, it completed a financing of 27 million US dollars. The investors are Romulus Capital, Cogepa Investments and IDO Investments. Allurion closed $34 million in financing in 2020.
The documents show that Allurion will generate revenues of $20 million, $38 million and $64 million in 2020, 2021 and 2022, respectively.
Following the business combination, Allurion will continue to be led by Shantanu Gaur, Allurion co-founder and CEO. Allurion's expanded board will be co-chaired by Krishna Gupta of REMUS Capital, a longtime Allurion investor, and Omar Ishrak, former chairman and CEO of Medtronic,
Shantanu Gaur, co-founder and CEO of Allurion, said: "From day one at Allurion, we have been committed to fighting obesity through our full-stack weight loss platform, which includes an artificial intelligence platform and behavior change programs."
Shantanu Gaur said, “Weight management and artificial intelligence are two themes that will shape healthcare for decades to come, and Allurion is doing pioneering work in both areas. The consortium of world-class investors and partners backing this transaction makes We are well-positioned to complete our mission to end obesity."
The following is the Allurion Roadshow PPT (refined by Leidi.com):
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