Neuronetics yesterday registered an initial public offering worth more than $86 million with the U.S. Security & Exchange Commission, saying it plans to expand its commercialization efforts for the NeuroStar transcranial magnetic stimulation device for treating depression.
The 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 $40.4 million, increased its red ink by 42.9% on sales growth of 18.1% compared with 2016.
First-quarter losses grew 21.8% to -$5.5 million, or -84¢ per share, on sales of $10.2 million for the three months ended March 31, for a top-line gain of 34.9% compared with Q1 2017.
Malvern, Pa.-based Neuronetics said it plans to list its shares on the NASDAQ exchange under the “STIM” symbol. The number of shares to be issued and their price have not been determined. Proceeds from the flotation are slated for expanding its sales force, R&D and general corporate purposes, according to the filing.
Piper Jaffray and William Blair & Co. are joint book-runners on the offering, with Canaccord Genuity and JMP Securities as co-managers.