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Restoration Robotics (HAIR) IPO


Give Me A Head With Hair, Long Beautiful Hair

If facial wrinkles and sagging skin is the bane of women’s existence, the prospect of balding is the male equivalent. Lately fashion has made man’s worst fear more acceptable. Shaved heads seem to be showing up more and more. But ask any one of those chrome domes if they would trade their new look for their old hair an you are guaranteed an answer.

HAIR is a medical technology company developing and commercializing a robotic device, the ARTAS System that assists physicians in performing many of the repetitive tasks that are a part of something called a follicular unit extraction surgery. In simple English, it is a type of hair restoration procedure.

The Two Step ARTAS System

Management claims the ARTAS System is the first and only physician-assisted robotic system that can identify and dissect hair follicular units directly from the scalp and create recipient implant sites. The System is designed in two parts.

ARTAS Hair Studio application is an interactive three-dimensional patient consultation tool that enables a physician to create a simulated hair transplant model for use in patient consultations. This is a great selling tool.

The ARTAS System is a physician-controlled, state-of-the-art, interactive, computer-assisted technology that enables statistically superior harvesting of hair follicles during hair restoration procedures.

Dr. Robert M. Bernstein, a pioneer in the ARTAS System claims a clinical benefit of up to 15% more hairs per harvest attempt and 11.4% more hairs per graft with the ARTAS System.

The improvement in graft harvesting results in better aesthetic outcomes for patients, that have wide implications as robotic hair transplant procedures are booming in popularity.

The Market

According to the International Society of Hair Restoration Surgery, at least 35 million men in the United States are affected by male pattern baldness. Of these, 73% feel they are less attractive than they were when they had hair while 68% feel helpless.

Solutions like hairpieces, weaves and plugs all have their share of drawbacks. They lacked a natural appearance and most provide little or no advanced view of results. This is where Restoration Robotics steps in.

HAIR Is No Start Up

The Mountain View, California Company can hardly be considered new having been founded back in 2002. The really important developments have taken place in the last few years.

The U.S. Food and Drug Administration approved the ARTAS System back in April 2011. As of June 30, 2017, Restoration Robotics has sold 89 ARTAS Systems in the U.S. and 144 in 29 foreign countries.

As of June 30, 2017, over 70 patents in the U.S. and over 100 international patents protected the ARTAS System and ARTAS Hair Studio application.


Up to the end of last year HAIR had raised just over $127 million during 8 rounds of venture investing. One of the benefits is that HAIR has only a small $16 million in debt.

Revenues reached $15.6 million last year and are ramping up nicely so far in 2017. For the first half sales jumped 67% to $11.2 million.

The company has yet to earn a profit. In the first half HAIR was $10.2 million in the red with an accumulated loss of $153.5 million.

The financials reflect the challenge for Restoration Robotics. The ARTAS System is a capital cost item for dermatologists and that usually involves relatively long selling cycles with considerable upfront marketing costs.

Use Of Proceeds

On September 1, 2017 filed an S-1 for an IPO to raise $29 million. All proceeds from the offering are targeted for domestic and international sales expansion of the ARTAS System as well as research and manufacturing. In other words, any and all proceeds are going to the company for growth purposes.


Management and the Board are filled with MD’s and highly experienced members of the medical products and technology field. Their leader seems a good fit for the marketing needs of the company.

Ryan Rhodes is President, Chief Executive Officer. His key past responsibility included 13 years at Intuitive Surgical Inc., the market leader in surgical robotics. Overall he brings over 25 years experience in marketing and sales in the medical device industry. Good luck Ryan.