NeuroPace, the maker of an implanted neurostimulation therapy device for uncontrolled epileptic seizures, announced a $33 million equity raise on Monday. Accelmed Partners led the investment, which was joined by new backers such as Revelation Partners, Soleus Capital and an unnamed strategic investor. Prior backers KCK Group and OrbiMed Advisors also contributed.
Alongside the equity, NeuroPace said that it also received $34 million in convertible debt financing from other prior investors in the company, and highlighted $27 million of committed capital available in a second tranche.
WHAT THEY DO
NeuroPace's business is centered on its RNS System, an FDA-approved neurostimulator indicated for adults who experience frequent and disabling epileptic seizures from one or two sources within the brain, and who have tried two or more anti-seizure medications to no avail. Unlike vagus-nerve-stimulation therapies, the RNS System places its leads directly on the source of the seizure.
After a surgical implant procedure, the technology acts as a closed-loop system that monitors and responds to brain activity by automatically delivering stimulation prior to the start of a seizure. EEG data is collected wirelessly through a home remote monitor, and transferred to an online system that doctors can review to adjust care.
WHAT IT'S FOR
Going forward, Neuropace said that it would be accelerating the company's commercial growth and exploring broader indications for its neurostimulation system.
“This round of financing will enable us to execute our commercial strategy and maximize therapy adoption at comprehensive epilepsy centers,” Mike Favet, CEO of NeuroPace, said in a statement. “It will also fund a clinical trial to expand our indication to patients under 18 years old, a population whose quality of life is especially impacted by epilepsy. We now have the highest seizure reduction rates reported by any epilepsy neuromodulation device, a robust product innovation pipeline, and market expansion opportunities. With this additional funding, we can bring RNS System’s life-changing technology to significantly more people who are living with refractory epilepsy.”
MARKET SNAPSHOT
Several different neurostimulation devices for seizure have received FDA approval over the years, although these have primarily been focused on the vagus nerve. Such devices sometimes rely on an implanted component to deliver stimulation, but others have developed noninvasive therapies that are self-administered and preventive. Mobile or smart-device interfaces for these devices vary from product to product, although recently Abbott received FDA approval for a neuromodulation system-controller app that replaces a controller device for some of its Parkinson's disease, essential tremor and chronic pain treatments.
