IPO Alert: Visicu, Inc. Pricing (EICU)

Includes: EICU, NHWK
by: Jon Ogg

Visicu, Inc. (Nasdaq: EICU) priced its 6M share IPO priced at $16.00, which is above the already revised $13.00 to $15.00 range (original was $11.0 to $13.00). Morgan Stanley and Wachovia were the underwriters in the deal.

This company provides remote monitoring of Intensive Care Units in hospitals, and is said to be set up to potentially expand into many other areas of remote monitoring for hospitals and healthcare facilities. Fiscal 2005 revenues were $18M and the company posted a $2M net loss (rounded number), so keep "valuations" in mind when you consider that the company looks set to have a market cap in excess of $500M out of the chute.

The company has no direct public pure-play competitors although NightHawk Radiology Holdings, Inc. (Nasdaq: NHWK) does provide radiological interpretations to its customers in the United States primarily from its centralized reading facilities located in Sydney, Australia and Zurich, Switzerland. This is not a direct overlap by any means, but NHWK's success has been attributed indirectly to the strong demand for the shares of EICU.

Since the range has already been bumped up twice, the "market chatter" on the opening price has been around $17.00 to $17.50. Please keep in mind that those numbers are never formal and can be much different than the actual opening price.

More information can be found on the company's website at www.visicu.com. The company was founded in 1998 and boasts the following client data:
- 34 health systems and one government facility
- 150+ hospitals in 22 states
- More than 4,000 beds in over 300 ICU's