NeuroSigma aims to reap as much as $50.2 million in its upcoming initial public offering for the UCLA spinout’s noninvasive system to treat drug-resistant epilepsy.
NeuroSigma plans to sell 3.6 million shares on the NASDAQ exchange for between $13 and $15 each, reserving the symbol NSIG, according to a regulatory filing.
NeuroSigma’s Monarch eTNS system delivers mild electrical signals through a forehead patch to stimulate branches of the trigeminal nerve. The Los Angeles-based company is marketing the device as an alternative to vagus nerve stimulation and deep-brain stimulation, both of which require surgical implants. NeuroSigma is also developing a subcutaneous, implantable version of the system.
The low-energy stimulus delivered by eTNS is confined to the soft tissue of the forehead without direct penetration into the brain. NeuroSigma says PET imaging studies confirm that eTNS inhibits key regions of the brain involved in epilepsy and activates key regions of the brain involved in depression, and that changes are observed within minutes of treatment. The device can be used at home while patients sleep.
The company received approval to market its system in Europe and Canada and holds an investigational device exemption from the FDA to conduct U.S. trials.
In August, NeuroSigma announced the U.S. Army is funding a Phase II clinical trial at UCLA to treat post-traumatic stress disorder, hard on the heels of a National Institutes of Health trial investigating the product to treat ADHD. NeuroSigma employs 11 people led by CEO Leon Ekchian, who previously was president of Arrowhead Research.
Jefferies is the lead underwriter of the IPO, with BTIG and Craig-Hallum Capital Group co-managers, according to the filing.