Sofinnova, Ally Bridge lead $108m Mainstay round

Katharine Hidalgo
17 February 2021

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Sofinnova Partners and Ally Bridge Group have co-led an equity financing of $108m for medical device company Mainstay Medical.

Sofinnova invested through Crossover Fund 1, which closed on €275m in April 2018. The round also saw participation from an undisclosed global medical device company, as well as Sofinnova through its Capital Fund, KCK Group and Fountain Healthcare Partners.

Mainstay intends to use the funds to support the company's commercial launch of ReActiv8 in the US, continued expansion in Europe and Australia, additional post-market clinical studies and research, and general operations.

Charles Chon, partner and managing director at Ally Bridge Group, and Cédric Moreau, partner at Sofinnova Partners, have also joined the Mainstay Medical board of directors.

Previous funding
In 2010, Soffinova invested $6.2m in Mainstay.

In September 2012, Fountain Healthcare along with Medtronic, Sofinnova, Seventure and Capricorn invested $20m in Mainstay.

In 2014, Mainstay raised €18m in its IPO on Euronext's French and Irish markets. The company issued 851,175 new shares during the offering, priced at €21.15 each, giving it a market cap of €90m. The offer also included an overallotment option for up to 45,953 additional shares. Mainstay's existing backers, which included Sofinnova, Fountain Healthcare, Capricorn, Seventure and two US-based VCs, invested €8m in the offer. David Brabazon, a director at the company, also invested €100,000.

Mainstay raised gross proceeds of €30.1m through the issue of 2,151,332 new ordinary shares to new and existing shareholders in February 2018. The Ireland Strategic Investment Fund (ISIF) participated in the financing, subscribing for 714,285 new shares at a price of €14 apiece, amounting to approximately €10m. Sofinnova, Fountain Healthcare, KCK and several individual investors also participated in the round.

Company
Mainstay manufactures medical devices designed to treat people with chronic low back pain. The company has operations in Ireland, Australia, and the US. The Dublin-based business was founded in 2008.

People
Sofinnova Partners – Cédric Moreau (partner).
Ally Bridge Group – Charles Chon (partner, managing director).