Sources: Johnson & Johnson-backed HistoSonics eyes IPO

HistoSonics Inc., a medical device company whose backers include Johnson & Johnson's venture capital arm, is considering a U.S. initial public offering (IPO) this year, according to people familiar with the matter, according to Bloomberg.

The company has been in talks with investment banks as it evaluates a potential share sale that could raise hundreds of millions of dollars, the people said, noting that HistoSonics is looking to achieve a valuation of several billion dollars upon listing.

The talks are in the early stages and no final decisions have been made, the people said.

A HistoSonics representative declined to comment on the Bloomberg report.

HistoSonics is developing a medical device that treats liver cancer by directing ultrasound waves directly at the tumor, an approach known as histotripsy, according to the company's website. The ultrasound is so intense that it destroys the tumor. The technology, which is being hailed as a non-invasive alternative to surgery, is set to be approved in the U.S. in 2023. It made its Asian debut last year, when Hong Kong billionaire Li Ka-shing donated two devices to hospitals in Hong Kong.

HistoSonics raised $102 million in a private Series D round led by Alpha Wave Ventures in August. New investors Amzak Health and HealthQuest Capital participated in the round, and existing investors including Johnson & Johnson Innovation-JJDC Inc. and Lumira Ventures also invested.

According to auntminnie.com, the funding will be used to further develop the company's non-invasive histotripsy platforms, support commercial growth in the U.S. and other global markets, and launch HistoSonics' BOOMBOX master trial, which will evaluate its Edison histotripsy system for treating liver tumors. Edison received de novo approval in October 2023 from the US Food and Drug Administration (FDA). HistoSonics is also collaborating with institutions in the US and around the world to develop multidisciplinary liver histotripsy programs.

HistoSonics was awarded a $90 million contract in the fall of 2024 to provide Veterans Affairs hospitals with early access to its technology, according to startribune.com.