Mainstay Medical announced an equity financing worth $125 million set to support the commercial growth of its neurostimulation technology.
The company plans to put its new funds toward commercializing its ReActiv8 system in the U.S., Europe and Australia. It also has eyes on using the money for post-market clinical studies and research, plus general operations.
ReActiv8, an implantable restorative neuromodulation system, treats adults with intractable chronic low back pain (CLBP) associated with multifidus muscle dysfunction. It holds regulatory approval in Europe, Australia, the UK and U.S. The FDA earlier this month approved the system for MRI labeling as well.
New investors Gilde Healthcare and Viking Global Investors co-led the financing round. Key existing investors also participated in the financing. That includes Ally Bridge Group, Sofinnova Partners, Fountain Healthcare Partners and Perceptive Advisors.
“A financing of this magnitude will allow us to accelerate our efforts to revolutionize the treatment of mechanical low back pain through ReActiv8 restorative neurostimulation, including by continuing our rapid commercial growth and building on our insurance coverage for ReActiv8,” said Jason Hannon, CEO of Mainstay Medical. “We are now strongly capitalized to execute on our corporate objectives. In addition to commercial expansion in our target markets, these objectives include the generation of additional clinical and health economic data to further demonstrate that ReActiv8’s purpose-built, restorative approach to the treatment of mechanical chronic low back pain is superior to competitive therapies originally designed for other indications, as well as the continued development and enforcement of our dominant intellectual property portfolio.”