Insightec raises $150 million six months after cutting 20% of staff
Insightec raises $150 million six months after cutting 20% of staff
The healthcare company, which has developed a platform that focuses on sound waves, safely guided by MRI, to provide tremor treatment to patients, raised the funding at a $375 million valuation, down from $1 billion
Healthcare company Insightec, which uses focused ultrasound to provide tremor treatment to patients, announced it has raised $150 million in equity financing. The round was led by Fidelity Management & Research Company and co-led by Nexus Neurotech Ventures and Ally Bridge Group. New investors included Baillie Gifford, Catalio Capital Management, Fayez Sarofim & Co., and Gilmartin Capital, with affiliates of York Global Finance / Community Fund and Perceptive Advisors, also participating. The Koch family, which owns about 40% of the company, did not take part in the round.
Last December Insightec laid off 100 of its employees, representing approximately 20% of the company's workforce. The company has developed a platform that focuses on sound waves, safely guided by MRI, to provide tremor treatment to patients with medication-refractory essential tremor and Parkinson's disease.
Insightec suffers from negative equity of $78 million. The company lost $101 million last year and an additional $26 million in the first quarter of 2024, following a 30% drop in revenue.
Insightec’s valuation in the round was not revealed, but according to Elbit Medical, which holds 3% of the company, the funding was raised at a $375 million valuation, down from $1 billion. Approximately two years ago, the company was in talks to merge with a SPAC at a value of $1.9 billion, but the deal did not materialize and the company's valuation plummeted.
"This financing provides Insightec with runway to expand incisionless neurosurgery to the many patients suffering from movement disorders and continue to make calculated and strategic investments in new indications," said Maurice R Ferré, M.D., CEO and chairman of the board of Insightec.
