R2 Technology Inc., a venture-backed software developer focused on mammographic screening for breast cancer, withdrew registration papers for a proposed $49.5 million IPO. The company planned to sell 4.5 million shares for $10 million to $12 million each.
The Sunnyvale, Calif.-based company had originally filed back in December 2001, and cited “current market conditions” as the reason for its change of heart. R2 has received over $60 million of venture capital since its 1993 founding from such firms as Morgan Stanley Venture Partners (11.2% ownership), Alta Partners (7.3% ownership), ARCH Venture Partners (7% ownership) and Sigma Partners (6.1% ownership).
R2 had hoped to be listed on the Nasdaq under the symbol RTWO. Robertson Stephens, U.S. Bancorp Piper Jaffray and CIBC World Markets were listed as underwriters for the offering.
Proceeds from the IPO were expected to be used for general purposes including working capital, research and development, sales and marketing, clinical and regulatory studies and capital spending.
According to the company’s S-1 filing it competitors include GE Medical Systems, Siemens AG, Philips Medical Systems, Toshiba Corp., Kodak and Fuji.
Breast cancer is the most commonly diagnosed cancer in women and the second leading cause of cancer mortality in the U.S. In 2000, in the U.S. and Europe alone, over 548,000 people were diagnosed with breast cancer, and nearly 181,000 died from the disease. The widespread recognition of both the devastating impact of breast cancer and the importance of early detection has led to almost 58 million screening and diagnostic mammograms annually in the U.S. and Europe. Currently, there is an installed base of over 25,000 mammography systems worldwide.
R2’s S-1 filing says that its objective is to be the leading provider of proprietary solutions that improve the accuracy of cancer detection.
Contact Danielle Fugazy