Company focused on treatment of lower back pain raises €30m in funding
Dublin-listed Mainstay Medical has raised €30m in funding.
The medical device company, which is focused on bringing ReActiv8, an implantable restorative neurostimulation system to treat disabling chronic lower back pain to the market, raised the funds through the issuing of just over two million new ordinary shares.
Funds raised will be used for a number of corporate purposes including to complete the US Pivotal ReActiv8-B Clinical Study in support of an application for pre-market approval from the US Food and Drug Administration (FDA).
"Our goals for the next two years are clear: complete the ReActiv8-B clinical study, file the PMA for ReActiv8 with the FDA, and build our commercial presence in 2018 for more meaningful commercial expansion starting in 2019," Jason Hannon, CEO of Mainstay, said.
As well as this, the funding will go towards advancing the initial commercialisation of ReActiv8 in Germany and additional markets, and to invest in early commercial activities in preparation for launch in the US, a statement from the company said.
Investors in this financing were primarily institutions in Europe and North America, at a price of €14 per new share.
In addition, the Ireland Strategic Investment Fund (ISIF) is to invest in around 33pc of the new shares, for an amount of approximately €10m.
The company’s existing long-term investors, Sofinnova Partners, Fountain Healthcare Partners and KCK, as well as several individual investors, are also participating in the financing.
The company also today announced its full year results for 2017.
Revenue during the year ended 31 December 2017 was $0.3m, and the company had cash on hand of $10m at the end of the year.
Operating expenses related to on-going activities were $27.9mn during the year, up from $16.8m in 2016, as the company continued with its research and development, clinical trials, and commercial expenditure.
The company had $7.8m cash on hand at 31 January 2018.