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| Mainstay Medical Chairman Oern Stuge |
Mainstay Medical raised €18 million ($25 million) through a previously announced European IPO to develop its implantable neuromodulation device to treat low back pain.
The Irish devicemaker sold 851,175 shares at €21.15 ($29.33) apiece--a price at the low end of the company's expected range, the Irish Times reports. Mainstay announced plans in April to raise funds via a dual listing on the Irish Stock Exchange and Euronext Exchange in Paris, and expected prices to be between €20 and €27 a share. Existing shareholders such as Fountain Healthcare Partners and Medtronic ($MDT) invested €8 million in the offer.
"We are delighted with the very positive response from institutional and individual investors who recognized that Mainstay Medical's unique and innovative approach to treating chronic low back pain, in addition to meeting a major clinical need, also offers an attractive investment opportunity," Mainstay Chairman Dr. Oern Stuge told the Times.
Mainstay will use proceeds to develop its ReActiv8 neuromodulation product, an implantable device that provides electric stimulation to impaired nerves near the spine to alleviate chronic low back pain. In March, the company won approval from Australian authorities to begin clinical trials of the device. Mainstay will use funds from its IPO for ongoing trials in Australia and Europe, the Times reports.
Additional funds could also help the company win regulatory approval for its device in the U.S. and Europe. Mainstay plans to secure a CE mark for its ReActiv8 product by the fourth quarter of 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. With companies like St. Jude Medical ($STJ) and Boston Scientific ($BSX) developing their own neuromodulation technology, regulatory blessings could go a long way in helping Mainstay compete with bigger names on the block.
"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," Stuge told Silicon Republic. "We have recently commenced clinical trials and have a clear plan to obtain regulatory approval for our innovative therapy."
- read the Irish Times article
- here's the Minneapolis/St. Paul Business Journal's take
- get more from Silicon Republic here