Mainstay Medical sets its sights on a €23 million IPO

Mainstay Medical Chairman Oern Stuge

Mainstay Medical has set its sights on a €23 million ($31.9 million) IPO to support development of its implantable neuromodulation device.

The Irish devicemaker will raise funds via a dual listing on the Irish Stock Exchange and Euronext Exchange in Paris--a flotation that could value the company at up to €125 million, The Irish Times reports. Existing shareholders such as Fountain Healthcare Partners and Medtronic ($MDT) will invest up to €8 million in the offer, the company said in a statement.

Mainstay had previously announced its plans to list on Euronext and the Enterprise Securities Market, and will issue 851,175 new ordinary shares at a price expected to be between €20 and €27 a share. The offering could rise to almost 1 million shares depending on investor demand, according to the Times.

The company plans on using funds to develop its ReActiv8 neuromodulation product, an implantable device that helps patients with chronic low back pain by providing electrical stimulation to impaired nerves near the spine. In March, Mainstay got a regulatory OK from Australian authorities to begin clinical trials of the device. Proceeds from its IPO will help fund ReActiv8 trials in Australia and Europe, the company said in a statement.

Additional funding could also help Mainstay gain regulatory approval for its neuromodulation technology in the U.S. and Europe. The company plans on securing a CE mark for its ReActiv8 device by Q4 2015 and will begin preparing a formal IDE submission to start clinical trials in the U.S. this year, spokeswoman Eilish Joyce told FierceMedicalDevices in a written statement in March.

"We believe that ReActiv8 offers an innovative therapy for the millions of people who suffer from chronic low back pain and proceeds from the offer will be used to achieve the necessary regulatory approvals and to advance the commercialization of ReActiv8," Dr. Oern Stuge, Mainstay Medical's chairman, told Silicon Republic. "We have recently commenced clinical trials and have a clear plan to obtain regulatory approval for our innovative therapy."

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- here's the Irish Times story
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