Neuronetics adds up-to $12m over-allotment option to pending IPO

Neuronetics this week added an underwriter’s option to its initial public offering, which could bring in between $10.5 million and $12 million if fully exercised, and gave a rough price range for the offering. The Malvern, Penn.-based company said it is filing for the public offering to expand its commercialization efforts for the NeuroStar transcranial magnetic stimulation device for treating depression. Neuronetics now plans to offer a total of 5 million shares up front, expecting them to be priced between $14 and $16 per share, which would bring the total for the IPO to between $70 million and $80 million. The over-allotment option, which adds an additional 750,000 shares, lifts the total the company could raise up to a maximum of $92 million, according to a recently posted SEC filing. Neuronetics said it plans to list its shares on the NASDAQ exchange under the “STIM” symbol. The company’s NeuroStar device uses MRI-strength magnetic fields to stimulate specific areas of the brain associated with mood. The device initially won 510(k) clearance from the FDA in December 2008, for treating adults with major depressive disorder who previously failed to respond to one medication. The federal safety watchdog expanded NeuroStar’s indication in May 2014 to cover adult patients who failed to respond to one or more medications in their current depressive episode. There are 781 NeuroStar installations across 615 psychiatry practices, with some 50,000 patients t...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Initial Public Offering (IPO) Neurological Wall Street Beat Neuronetics Source Type: news