Penumbra Incorporated (PEN) – Buy Recommendation – $42.25
The 25-day quiet period on Penumbra Incorporated will come to an end on October 13, 2015, allowing the firm’s IPO underwriters to publish analyses on the firm that makes medical devices to address neuro and peripheral vascular conditions and other vascular conditions on October 14th.
PEN’s share prices will likely see a temporary rise in response to the release of the underwriter reports, opening another buying opportunity for this growing firm.
We previewed PEN’s quiet period expiration event, as well as its IPO, on our IPO Insights platform.
Early Market Performance: Steady Climb Post-IPO
PEN’s IPO was priced above its expected price range of $25 to $28 per share, at $30 per unit. The stock closed at $41.30 on its first day of trading for a gain of 37%. PEN has risen steadily, and currently it trades at $41.11 (market close 10.7.2015).
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Business Overview: Maker of Medical Devices to Treat Vascular Conditions
See our IPO preview of PEN here.
Penumbra is a maker of medical devices designed to address certain vascular conditions, which include ischemic and hemorrhagic stroke that block or rupture blood vessels in the brain. These devices are marketed in the United States, Europe, Canada, Australia and internationally. Its neurovascular access devices are branded under the names Neuron, Neuron MAX, Select, BENCHMARK, DDC, PXSLIM, and Velocity. Its aspiration-based devices and systems are branded under the name 3D, and these products assist with thrombectomy procedures.
Other products include a stent retriever, embolization coiling sytems under than names Penumbra Coil 400 and Penumbra SMART Coil. Other branded devices are marketed under the names LIBERTY Stent, Apollo System, RUBY Coil, Indigo System, and POD.
The company is using the proceeds of the IPO for capitalization, financial flexibility, further research and development, clinical trials and expansion of its sales force.