Nevro Corp. today raised the stakes on its forthcoming initial public offering, saying it will offer half a million more shares at a dollar over the high end of its prior range.
Menlo Park, Calif.-based Nevro said it now plans to float 7 million shares at $18 each, for gross proceeds of $126 million. The company, which makes an implantable spinal cord stimulation system designed to treat chronic pain, plans to trade on the NASDAQ exchange under the symbol NVRO.
Nevro had planned to issue 6.25 million shares at $15 to $17 apiece in the IPO, 1st announced earlier this month. The new terms for the IPO, expected to hit the market today, include a 30-day over-allotment option for another 1.05 million shares for the offering’s underwriters, according to a press release.
Founded in 2006, Nevro has been led since 2011 by ex-Medtronic (NYSE:MDT) COO Michael DeMane. The company has raised more than $153 million so far from backers including Johnson & Johnson (NYSE:JNJ), Covidien (NYSE:COV), Novo Nordisk and New Enterprise Assoc. A Series C round brought in $48 million last year.
In June, the company asked the FDA for premarket approval for its Senza device, a high-frequency spinal cord stimulation system that delivers up to 10,000Hz to the spinal cord. Nevro said previous trials demonstrated that its HF10 therapy is nearly twice as successful in treating back pain as traditional SCS devices, which typically deliver between 40Hz and 60Hz. The company is conducting the Senza-RCT study, a prospective, randomized, controlled pivotal trial comparing Senza to treatment with low-frequency spinal cord stimulation.
Nevro said it hopes to have the Senza device on the U.S. market by early 2016 if approved by the FDA.
Physicians have already implanted Senza in some 2,500 patients in Europe and Australia, with Nevro reporting a $26 million loss in 2013 on revenue of $23.5 million. The company has established subsidiaries in Australia, Switzerland and the U.K. Nevro cited estimates that 84 million people in the United States suffer chronic back pain, costing $34 billion to treat annually and another $100 billion in the form of lost productivity.