Neuronetics prices $94m IPO

Neuronetics today priced its upcoming initial public offering, expecting to raise approximately $93.5 million to support its NeuroStar transcranial magnetic stimulation system designed to treat patients with major depressive disorder who aren’t responding to medication. The Malvern, Penn.-based company said it is looking to float 5.5 million shares of its common stock at $17 per share in its IPO. The offering also includes a 30-day underwriter’s option to purchase an additional 825,000 shares, which could net an additional $14.5 million for the company. Shares are expected to begin trading today under the ticker symbol “STIM”, Neuronetics said, and is expected to close on July 2, according to a press release. 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 treated in roughly 1.8 million sessions, the company said in its SEC filing. The company reported losses last year of -$16.1 million, or -$2.97 per share, on sales of $4...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Initial Public Offering (IPO) Neurological Neuronetics Source Type: news