Northstar Neuroscience sets IPO guidance at $12 to $14 per share

New York, April 17 - Northstar Neuroscience, Inc. announced guidance of $12 to $14 for the pricing of its planned initial public offering of common stock.

The company aims to sell 6 million shares with a possible additional 900,000 share greenshoe, according to an S-1/A filing with the Securities and Exchange Commission.

Citigroup and Cowen & Co. are bookrunners for the sale while First Albany Capital and Leerink Swann & Co. are co-managers.

Northstar originally announced the sale in a March 1 filing with the SEC, at which point it registered to sell up to $85 million of common stock.

As previously disclosed, Northstar Neuroscience will use $7 million of the proceeds for the direct costs of completing its Everest trial, $26 million to continue development of its cortical stimulation therapy system for applications other than stroke motor recovery, including other clinical trials and research programs, $16 million to build sales and marketing capabilities to support the commercial launch of its Northstar Stroke Recovery System and the remainder for working capital and other general corporate purposes.

Based in Seattle, Northstar is a medical device company focused on developing and commercializing novel neurostimulation therapies for neurological diseases and disorders.

Its proprietary technology is designed to deliver targeted electrical stimulation to the outermost layer of the brain, called the cortex, in a process referred to as cortical stimulation.

The Everest study is a pivotal trial for stroke motor recovery. If successful, Northstar intends to ask the Food and Drug Administration for approval to market the Stroke Recovery System.

As of April 17, 48 out of a targeted 174 patients were randomized in the trial and the company expects to complete the four-week primary endpoint follow-up on the last patient by the first quarter of 2008, a slippage from the previously disclosed second half of 2007.

For 2005, Northstar reported a net loss of $20.23 million on zero revenue.

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