NeuroSigma, which develops electrical devices used to treat drug-resistant epilepsy and depression, announced terms for its IPO on Monday. The Los Angeles, CA-based company plans to raise $50 million by offering 3.6 million shares at a price range of $13 to $15. At the midpoint of the proposed range, NeuroSigma would command a fully diluted market value of $204 million.
The company is in pivotal trials to have its bioelectronic products approved in the US, and has received marketing approval as an adjunctive therapy for adults in Australia, Canada and the EU. Its device expects to complete Phase 3 trials for epilepsy in late 2016 and is in Phase 2 trials for major depressive disorder. Additionally, the National Institutes of Health is funding trials for the device's use in treating ADHD and the US Army is behind trials for PTSD, both of which have completed Phase 1 trials.
NeuroSigma's primary shareholders include co-founder and CEO Leon Ekchian, Chairman Lodwrick Cook, Chief Medical Officer Ian Cook and General Counsel David Hayes. Recent epilepsy IPOs include biotechs Marinus Pharmaceuticals (MRNS) and Sage Therapeutics (SAGE).
Revenue nearly tripled to $24,000 during the six months ended June 30, 2014 as the company commenced marketing in the European Union. Its operating loss increased to $7 million from about $3 million in the prior period due to higher stock-based compensation.
NeuroSigma, which was founded in 2008, plans to list on the NASDAQ under the symbol NSIG. Jefferies & Co. is the sole bookrunner on the deal. It is expected to price during the week of October 6, 2014.
