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In this Thursday, April 18, 2019, file photo, Tommy Kalikas, right, works with fellow traders on the floor of the New York Stock Exchange. 

A medical technology firm that grew out of Oregon State University research has reeled in more than $275 million in its initial public stock offering.

Outset Medical, formerly called Home Dialysis Plus, makes the Tablo system of hemodialysis, which pumps blood out of the body to an artificial kidney machine. The company is the first OSU spinoff to go public.

During and after the company’s founding, multiple faculty from OSU’s colleges of engineering and science served as researchers and consultants. OSU researchers involved included Brian Paul, Goran Jovanovic, Todd Miller, Vince Remcho and the late Richard Peterson. The core products fueled by Oregon State research included microchannel dialyzers and a microchannel heat exchanger.

“It’s essentially a small-scale, efficient water purification technology that would allow the use of tap water in dialysis as opposed to gallons and gallons of pre-purified water, expanding capabilities in developing countries,” said Brian Wall, associate vice president of research, innovation and economic impact at Oregon State.

“They are now targeting and focusing investment in it over the next year to see if we can get it to a price point that works for the market. Outset is a terrific example of the kind of company OSU is proud to partner with, one that improves people’s lives while driving the creation of jobs (and) truly maximizing our impact.”

The company was founded in 2003 as Home Dialysis Plus. It secured an option for OSU intellectual property the following year.

Oregon State and the company transformed the option deal into a full intellectual property license in 2008, and between 2010 and 2018 the company secured private investments of more than $300 million. Outset Medical continues to contract with Oregon State on the refinement of the technology.

Outset Medical has plants in Morgan Hill, California, and Mexico. The IPO took place in mid-September. On day one, the firm sold nearly 9 million shares, which started at $27. Analyst projections forecast 7.6 million shares selling for between $22 and $24. By the end of the day the stock had risen to above $61, an increase of 125%.

The sale gave the firm a market capitalization of $2.5 billion, more than three times better than analysts’ projections. The stock closed Monday at slightly less than $44 per share.

Copyright 2020 Tribune Content Agency.

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