Axonics Modulation Technologies Raises $120 Million in IPO to Advance Rechargeable Sacral Neuromodulation Therapy

Recently, VCBeat (WeChat official account: vcbeat) learned from foreign media reports that U.S. biomedical company Axonics Modulation Technologies announced the completion of its $120 million initial public offering (IPO). The company stated that it could raise additional proceeds from the IPO if the underwriters’ over-allotment option is exercised.

Axonics, founded in 2012 and headquartered in Irvine, California, is a biomedical technology company focused on the design, development, and commercialization of novel implantable neuromodulation technologies. The company has developed a rechargeable sacral neuromodulation (r-SNM) system primarily indicated for the treatment of overactive bladder (OAB), fecal incontinence (FI), and urinary retention (UR).

Image from the Axonics official website

The system’s device is 60% smaller than existing comparable devices on the market. Axonics states that it is the first system capable of repeated external charging, with an implanted lifespan of approximately 15 years of normal operation. It primarily delivers mild electrical stimulation via a four-electrode lead connected to a pulse generator implanted in the buttocks and targeting the sacrum. Currently, Axonics has obtained marketing approvals for overactive bladder (OAB), fecal incontinence (FI), and urinary retention (UR) in Europe, Canada, and Australia. Furthermore, Axonics received CE marking approval from the European Union in June 2016 and FDA investigational device exemption (IDE) approval for clinical trials in the United States in July 2017. In its IPO filing, Axonics indicated that it expected to submit a premarket approval (PMA) application to the FDA in the first quarter of 2019.

Axonics’ initial public offering was led by BofA Merrill Lynch, Morgan Stanley, and Wells Fargo Securities as joint book-running managers, with SunTrust Robinson Humphrey serving as co-manager. The company announced on October 30 (local time) that the offering price for its 8 million shares of common stock in the IPO was set at $15.00 per share. Axonics also granted the underwriters a 30-day option to purchase an additional 1.2 million shares of common stock at the IPO price, along with reduced underwriting discounts and commissions. All shares of common stock were offered by Axonics.

On October 31, 2018, Axonics’ common stock began trading on the Nasdaq Global Select Market under the ticker symbol “AXNX.” The stock opened at $16.05 per share on October 31 and closed down 6.7% at $14.98. In trading on November 2 local time, the share price rose 4.3% to $15.12 per share.

Notably, following Axonics’ initial public offering (IPO), Legend Capital, the company’s earliest institutional investor, extended its congratulations. Legend Capital stated that the listing would significantly accelerate the commercialization and market launch of Axonics’ products in Europe and the United States, helping to break existing market monopolies. Previously, Legend Capital had invested in the company in 2014, 2015, and 2017, respectively.

Legend Capital was established in April 2001, founded under the leadership of Liu Chuanzhi, President of Legend Holdings. Initially named “Legend Capital,” it operated as an independent professional venture capital firm under Legend Holdings. In February 2012, Legend Capital was renamed Legend Capital (Junlian Capital). The firm’s core business focuses on early-stage venture capital and growth-stage expansion investments. Currently, Legend Capital manages five US dollar funds and two RMB funds, with total assets under management exceeding RMB 13 billion. It primarily invests in innovative, high-growth companies whose operational entities are based in China or whose markets are closely tied to China.