Source: PR, ReWalk website

ReWalk Robotics Ltd. (NASDAQ: RWLK) saw its shares more than doubled in their stock market debut, following an IPO of 3 million shares at $12 per share. The Israeli maker of recently-approved (June 2014) wearable exoskeletons that enable paraplegics to walk became the fifth IPO of 2014 to spike 100% or more in a day of trading, and the only IPO since 2000 to do so after pricing below the range.

The company had originally planned to sell 3.4 million shares in a price range of $14 to $16 while underwriters have a 30-day option to buy an additional 450,000 shares.

The IPO announcement follows FDA approval for the company to market the device to the American public and for people to take the device out of rehab. The ReWalk system already received the EU approval at the end of 2012.

With the FDA approval, according to the company, inquiries by potential customers have increased significantly and as of August 1, more than 80 systems were sold, mostly for clinical rehabilitation centers.

The IPO filing shows an estimated NSCISC report that as of 2013 there were 273,000 people in the United States living with a spinal cord injury, with an annual incidence of approximately 12,000 new cases per year. Roughly 42,000 of those patients are veterans and are eligible for medical care and other benefits from the Veterans’ Administration. The company further said that it believes almost 80%, or 218,000 spinal cord injury patients in the United States, could be candidates for current or future ReWalk products.

Standing to gain the most from this IPO is SCP Vitalife Partners, a Pennsylvania-based venture firm that owns a 24 percent stake in ReWalk. Other major shareholders are Yaskawa Electric Corporation (20.4 percent); Israel Healthcare Ventures (18.7 percent); Pontifax (11.5 percent); investors through the crowdfunding website OurCrowd (7.2 percent) and Previz Ventures (6.2 percent).

More than walking

The system was developed by Dr. Amit Goffer, an Israeli inventor who became quadriplegic after an ATV accident in 1997. It was through his personal experience in utilizing mobility devices for people with spinal cord injuries that Goffer developed the ReWalk. Goffer, who holds 3.7% of ReWalk, received additional shares during the IPO and will own 6% of the company (that is if the IPO share price will reach an agreed amount between the parties). In other words, his share value is expected to reach $12-15 million .

The company has developed its ReWalk wearable exoskeleton using patented tilt-sensor technology and an on-board computer with motion sensors that drives motorized legs to do the “heavy lifting” and literally walk for the user. The system controls movement using subtle changes in center of gravity, mimics natural gait and provides functional walking speed, enabling paraplegics to move independently. Even the running of marathons is a possiblity with ReWalk, as a paralyzed woman did two years ago.

The company now has two products: the ReWalk Rehabilitation, designed for clinical rehabilitation, and the ReWalk Personal, for personal home and work use. In addition to providing wearers with the ability to stand and walk independently, clinical studies show that using the ReWalk also provides significant mental health benefits, as users have a much more positive self-image as they gain independence and control over their movements. Furthermore, the studies show, using ReWalk promotes cardiovascular health, loss of fat tissue, building of lean muscle mass, and improved bowel function.