Mainstay Medical Receives $125M Equity Financing

Mainstay Medical has received $125 million in equity financing, which the company plans to use to support its continued commercial growth of ReActiv8 restorative neurostimulation in the U.S., Europe, and Australia.
 
The company also plans to use the proceeds for further postmarket clinical studies and research, as well as operations.
 
The financing round was co-led by new investors Gilde Healthcare and Viking Global Investors.
 
“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.
 
ReActiv8 is an implantable device designed to treat adults with intractable chronic low back pain (CLBP) associated with multifidus muscle dysfunction. Earlier this month, ReActiv8 was cleared by the U.S. Food and Drug Administration (FDA) earlier this month.
 
“We are now strongly capitalized to execute on our corporate objectives,” Hannon continued. “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.”