The Pfizer and GE-backed medical device developer has closed its initial public offering after the underwriters took up the over-allotment option.
Neuronetics, a US-based medical device developer backed by pharmaceutical firm Pfizer and industrial, healthcare and power technology producer General Electric (GE) closed its initial public offering at $107.5m yesterday.
The company priced 5.5 million shares at $17.00 each on the Nasdaq Global Market last week, raising an initial $93.5m. Its shares closed at $26.96 yesterday, giving it a market capitalisation of about $451m, and the underwriters took up an option to buy a further 825,000 shares.
Neuronetics’ lead product is the NeuroStar Advanced Therapy System, a device intended to treat psychiatric disorders by using transcranial magnetic stimulation to create a magnetic field capable of stimulating parts of the brain associated with a person’s mood.
About $25m of the IPO proceeds will go to commercialising and marketing the system while another $17m will be channelled into research and development. The offering came after Neuronetics had raised approximately $187m in funding.
Pfizer and venture capital firm Polaris Venture Partners co-led a $30m series E round for the company in 2011, with the former participating through its Pfizer Venture Investments subsidiary.
Three Arch Partners, Interwest Partners, Investor Growth Capital, New Leaf Venture Partners, Onset Ventures and Quaker BioVentures also took part in the series E, which was followed by a $34.3m series F round in 2015 backed by Pfizer Venture Investments and GE unit GE Ventures.
Neuronetics raised another $15m in a June 2017 round featuring Pfizer Venture Investments, GE Ventures and Ascension Ventures, a VC firm backed by several hospital systems.
Polaris, Interwest, Onset Ventures, New Leaf, Three Arch, Investor Growth Capital, Accuitive Medical Ventures, Industry Ventures and KBL Healthcare Ventures also invested as part of the 2017 round.
GE Ventures owned an 11.6% stake in Neuronetics that has been diluted to 7.4% while Ascension Ventures’ stake was cut from 6.6% to 4.2%.
The company’s other notable investors include Investor Growth Capital (10.2% post-IPO), New Leaf (8.8%), Interwest (5.9%), Onset Ventures (5.7%), Polaris (4.7%) and Quaker BioVentures Management (3.6%).
Piper Jaffray and William Blair & Company were the joint book-running managers for the IPO, while Canaccord Genuity LLC was lead manager and BTIG and JMP Securities co-managers.
– Image courtesy of Neuronetics.
