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How This Swedish MedTech IPO Surged Over 1000%

By Motley Fool Staff – Jan 7, 2022 at 7:15AM

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The company co-founder recognized a lucrative market opportunity.

In this segment of "Industry Focus" on Motley Fool Live, recorded on Dec. 15, Fool Analyst Yasser El-Shimy and Tech Host Dylan Lewis discuss BICO Group's (BICO) whirlwind start as a company and its IPO.

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Yasser El-Shimy: It's a very interesting story because if you look at the background of one of their co-founders, Erik Gatenholm, who's the CEO currently, he was actually an MBA student and he was introduced at the very young age of 23 years old to 3D bioprinting around 2014.

At that time, academics and pharmaceutical companies, anybody who actually was in the field of bioprinting, had to mix their own bioinks in-house. Then they have to shell out that at least $250,000 for that bioprinter.

But the fact that they have to mix their bioinks in-house meant that it was a lengthy process and it also opened the door for error, human error otherwise. Because each lab now has different standards of what constitutes bioinks. Sometimes there would be compatibility issues.

A lab can make a bioink and then the bioprinter doesn't work. Who do you go to? If you complain to the company that sold you the bioprinter, well, they aren't going to tell you, "Well, it's your fault for the bioink didn't work."

Erik recognized that gap in the market and he actually co-founded Cellink in 2016, again, 25 years old. He listed the company at the Nasdaq First North exchange in Stockholm only 10 months after founding the company.

Fun facts here, the IPO was oversubscribed by over 1,000%, showing the very strong appetite among investors to get behind this company, especially on the European arena.

Dylan Lewis: Yeah, oversubscribed IPO is usually a pretty good sign. A lot of pent-up demand there.

Dylan Lewis has no position in any of the stocks mentioned. Yasser El-Shimy owns BICO Group AB. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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