Sight Sciences is a developer of medical and surgical devices for eye diseases. The company also plans to launch its IPO this week (here's Tipranks’ IPO Calendar). The offering has been set at a price range of $20 to $23 per share and the valuation is estimated at roughly $1 billion. The lead underwriters on the IPO include Morgan Stanley (MS), Bank of America (BAC), Citigroup (C), and Piper Sandler.
In 2010, Paul and David Badawi cofounded the company (yes, they are brothers). Paul currently serves as the CEO and helped to invent the company’s products. Before creating Sight Sciences, he was a venture capitalist at 3i Group, where he focused on healthcare deals. Some of his startup investments had M&A exits that involved buyers like Johnson & Johnson (JNJ) and Intuitive Surgical (ISRG).
As for David, he has a medical degree from Georgetown University and has been instrumental in creating Sight Sciences. He is the Chief Technology Officer, but also still spends time at his private medical practice.
Now let’s take a look at the Sight Sciences.
Backgrounder on Sight Sciences
The company has a rigorous product development strategy. First of all, there is a thorough analysis of the opportunity for a treatment. This means looking at existing clinical data, the underlying science and the literature. Next, a treatment must have a root cause. Then there needs to be an intuitive design, such as with a user-friendly design. Finally, there must be a clear-cut business model and a strong go-to market strategy.
Through this process, Sight Sciences has commercialized two products. One is OMNI, which hit the market in early 2018. OMNI is a handheld therapeutic device for ophthalmic surgeons to reduce glaucoma in adults. A key differentiation from other products is that OMNI is minimally invasive, which is critical for eyecare because the potential for damage is higher. The technology has 66 issued and pending patents.
The other treatment is called TearCare, which is focused on dry eye. It consists of a re-usable hardware controller and a wearable that is controlled by software. This allows for a customized solution for a patient’s eyelids, such as with targeted heat levels. Note that TearCare takes only about 15 minutes to apply.
In terms of growth, it was strong until the COVID-19 pandemic emerged. Sight Sciences suffered a hit to its revenues because there was a shut-down of elective procedures. However, during the past few quarters, the company has regained its momentum. In the latest quarter, its revenues went from $6.5 million to $8.6 million.