Retinal Implant Pioneer Second Sight Medical Advances "Bionic Eye" Technology Ahead of IPO Launch

Second Sight Medical Products, the company behind revolutionary camera-based retinal implants designed to restore vision for blind individuals, announced its IPO terms on Tuesday. The Sylmar, California-based firm plans to raise $32 million through the offering of 3.5 million shares priced at $9.00 per share, establishing a fully diluted market capitalization of approximately $326 million on the NASDAQ under ticker symbol EYES.

How the Bionic Eye Technology Works

At its core, the bionic eye system combines an implantable retinal device with specialized eyeglasses equipped with an integrated camera. When the user looks through the glasses, a computer-based video processor captures visual information and transmits electrical signals directly to the implant, allowing patients to perceive patterns of light and navigate their environment. Currently, the technology is FDA-approved exclusively for retinitis pigmentosa, a genetic disorder affecting approximately 1.5 million individuals globally and 100,000 in the United States.

Market Opportunity and Clinical Expansion

The company has successfully implanted 90 units to date. However, Second Sight’s growth trajectory extends far beyond its current indication. The organization plans to initiate clinical trials in the second half of 2014 targeting age-related macular degeneration (AMD), a condition impacting 20 to 25 million people worldwide. The company projects obtaining regulatory approval for this expanded application by 2019, positioning itself in a competitive landscape alongside other biotechnology firms developing AMD treatments.

Concurrent expansion efforts include pursuing regulatory clearance in international markets such as Canada and Turkey, broadening the bionic eye’s accessibility across regions.

Financial Performance and Investment Structure

Second Sight’s financials demonstrate accelerating traction. During the first quarter of 2014, revenue surged 45% to $657,000 compared to the prior period. More notably, the company’s gross loss contracted dramatically from $1.4 million to just $70,000. Despite increased marketing expenditures and workforce expansion, operating losses narrowed by 10% to $4.5 million. For the full 12-month period ending March 31, 2014, the company recorded $2 million in total sales.

To incentivize long-term shareholder commitment, each common share will include a non-transferable warrant, granting the holder one additional share at no cost two years post-IPO.

Ownership Structure and Leadership

Co-founder and Chairman Alfred Mann retains a 33% post-IPO stake, with Williams International holding 18%, Versant Ventures 13%, and CEO Robert Greenberg maintaining 3% ownership. Mann simultaneously serves as CEO of MannKind Corporation, indicating sustained involvement in innovative medical device development.

MDB Capital Group serves as the sole bookrunner for the transaction. Industry observers anticipate the IPO could price as early as September 2014, pending market conditions.