Neuronetics, Inc., maker of the NeuroStar TMS (Transcranial Magnetic Stimulation) Therapy System for the treatment of major depression, has completed its Series E financing totaling $30 million. Two new investors, Polaris Venture Partners and Pfizer Venture Investments, led the round.
Previous investors participating in the round included Investor Growth Capital, New Leaf Venture Partners, Interwest Partners, Three Arch Partners, Quaker BioVentures, and Onset Ventures.
"This financing is a tremendous vote of confidence in the potential of NeuroStar TMS Therapy by two premier life science investors," said Bruce J. Shook, President and CEO of Neuronetics, Inc. "The financial resources, experience and knowledge that Polaris and Pfizer bring to our company will allow us to build on our success and accelerate our efforts to bring NeuroStar to the millions of people suffering from depression."
Neuronetics has been marketing the NeuroStar TMS system for the treatment of major depression for patients who have not adequately benefitted from prior antidepressant medication since it was cleared by the U.S. Food and Drug Administration (FDA) in October 2008.
"The market opportunity for a novel, non-invasive and non-systemic treatment for major depression like Neuronetics' NeuroStar TMS Therapy is extremely attractive," said Kevin Bitterman, PhD, Principal at Polaris Venture Partners. "The NeuroStar TMS system gives psychiatrists an entirely new tool in their effort to treat those patients who are struggling with depression and do not get relief from existing therapies. The team at Neuronetics has done an impressive job of bringing this technology into mainstream medical practice, and we look forward to helping advance this important effort."
Dr. Bitterman will represent Polaris Venture Partners on Neuronetics' Board of Directors. Elaine Jones, Executive Director, Pfizer Venture Investments will serve as an Observer to the Board. They will join existing Board members Leslie Bottorff, General Partner at Onset Ventures; Michael Dale, former President and CEO of ATS Medical; Brian Farley, CEO of Entellus Medical; Wilfred Jaeger, MD, Partner at Three Arch Partners; P. Sherrill Neff, Partner at Quaker BioVentures; Dan Sachs, MD, representative for Investor Growth Capital; and, Bruce Shook.
"Pfizer has had a longstanding interest in treating depression," said Elaine Jones of Pfizer Venture Investments. "We look at Neuronetics' progress as the beginning of a potentially important advance in how we treat this often debilitating, chronic and costly disease. We are excited about supporting Neuronetics' effort to bring a new and innovative solution to psychiatry."
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