AAA Neuronetics eases into IPO filing

Neuronetics eases into IPO filing

US-based medical device producer Neuronetics filed for an $86.3m initial public offering on Thursday that will provide exits to pharmaceutical firm Pfizer, conglomerate General Electric and health system Ascension.

Founded in 2003, Neuronetics is working on medical devices that aim to improve the quality of life for patients suffering from psychiatric disorders.

The company’s first commercial product, NeuroStar Advanced Therapy System, acts as a non-invasive treatment that uses a pulsed, MRI-strength magnetic field to stimulate the area of the brain associated with mood regulation.

The company has raised $186.5m in funding to date, most recently closing a $15m series G round in June 2017 that featured Pfizer Venture Investments and GE Ventures, respective investment subsidiaries of Pfizer and General Electric.

The series G round also included Ascension Ventures, the corporate venturing arm of health system Ascension, as well as Accuitive Medical Ventures, Interwest Partners, Industry Ventures, Investor Growth Capital, KBL Healthcare Ventures, New Leaf Venture Partners, Onset Ventures, Polaris Venture Partners and Three Arch Partners.

Pfizer Venture Investments and GE Ventures also took part in a $34.3m series F round in 2015, alongside the company’s original investor base, the details of which were not disclosed.

Pfizer had already co-led a $30m series E round in 2011 with Polaris Venture Partners that included Investor Growth Capital, New Leaf Venture Partners, Three Arch Partners, Interwest Partners, Onset Ventures and Quaker BioVentures.

Proceeds from the initial public offering will be used to fund further commercialisation of NeuroStar, drive research and development activities and general corporate purposes.

GE Ventures is currently the largest corporate shareholder with an 11.6% stake, while Ascension owns a 6.6% stake. Pfizer does not own more than 5% in Neuronetics.

Investor Growth owns 15.9%, followed by New Leaf Ventures which owns 13.7%. Other significant shareholders include InterWest Partners (9.2%), Onset IV (8.9%), Polaris Venture Partners (7.3%) and Quaker BioVentures Management (5.6%).

Piper Jaffray and William Blair are serving as joint book-running managers for the offering. Canaccord Genuity, BTIG and JMP Securities are acting as co-managers.

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