On January 2, 2020 Avadim Health filed the paperwork for a $50 million IPO. The fast growing Asheville, NC based company provides non-prescription topical products to improve immune health, neuromuscular health and skin barrier health. The company intends to trade on the Nasdaq Global Market under the symbol “AHI.”
Avadim has experienced rapid growth. Revenues have grown from $1.9 million in Q1 of 2017 to $14.3 million in Q3 of 2019 according to the filing prospectus. The company has six marketed products, three of which they consider to be cosmetics (which do not require FDA approval): Theraworx Protect for Immune Health, Theraworx Protect U-Pak for Urinary Health and Combat One for soldier and first responder readiness. Their additional products are marketed as homeopathic products which are subject to an FDA risk based enforcement approach.
The company plans to pursue the development and commercialization of additional topical products to address risks that may lead to skin and surgical conditions. The also plan to launch a drug product under an over-the-counter, or OTC, drug monograph in the next year, seek clearance from the FDA for a medical device pursuant to a 510(k) notification in the next two to three years and seek de novo classification from the FDA for a second medical device in the next two to three years.
According to Avadim's prospectus, at the end of November 2019, the company's products were used in more than 250 acute care hospitals, more than 750 nursing homes and other long-term care facilities and were available in over 47,000 pharmacy locations. Between 2017 and 2018, their net revenues increased from $10.8 million to $29.0 million, representing an annual growth rate of 168%. For the nine months ended September 30, 2019 as compared to the same period in 2018, they grew their net revenues from $19.8 million to $34.4 million, an increase of 73%.