electroCore Aims Noninvasive Neurostimulation At The Masses

Article preview from Start-Up - September, 2013

Armed with a $40 million Series A financing, electroCore is pressing ahead with pivotal trials in several headache indications, with other neural and immune conditions to follow. With drug firms upping their interest in so-called “electroceuticals,” it could signal a shift away from certain pharmaceutical treatments.

electroCore Aims Noninvasive Neurostimulation At The Masses

Article preview from Start-Up - September, 2013

Vagus nerve stimulation (VNS) has been around for decades in implanted devices. But a few companies, with New Jersey's electroCore LLC at the forefront, are developing noninvasive VNS devices (nVNS). electroCore's lead product delivers a mild electrical signal to the cervical branch of the vagus nerve.

With no surgery needed, the technology’s proponents say it could eventually supplant pharmaceutical solutions. “I think it’s something that can compete at the front end of the continuum of care,” says electroCore CEO J.P. Errico, a veteran of several medical device start-ups including SpineCore Inc.

Fueled by a big Series A financing this year, electroCore is in four registration trails for various headache indications. It hopes it can launch its first product, gammaCore, in the US during the next two years. However, even if the ongoing pivotal trials are successful, it must still solve challenges in pricing and product usage control posed by the one-device-fits-all nature of the product. Other entrants into the so-called “electroceutical” field will be watching closely, as they’re likely to encounter similar challenges.

There is certainly momentum. The pharmaceutical industry is cautiously embracing VNS for a wide spectrum of diseases, particularly for patients refractory or resistant to standard treatments. GlaxoSmithKline PLC recently launched its Action Potential Venture Capital fund in August with an investment in VNS specialist SetPoint Medical Corp.[See Deal]. (See"GSK Ventures Into The Device World Through Bioelectronic Investment" — "The Pink Sheet" DAILY, Aug. 8, 2013.) Four months earlier, electroCore tapped Merck & Co. Inc.’s Global Healthcare Innovation Fund LLC, private equity groups Easton Capital and Core Ventures II, and its own founders to raise its $40 million Series A.

Continued...

To read this article in its entirety, purchase now, as a PDF and recieve it immediately via email. Or get it free when you subscribe to Start-Up.

About Start-Up

No publication reviews leading edge companies and technology better than Start-Up. Each issue of Start-Up profiles the most important new product companies, identifies the hottest technology areas, reviews funds flowing into private companies and investment trends, and reports on university tech transfer licensing. Industries covered: pharmaceuticals, biotechnology, medical equipment & devices, and in vitro diagnostics.

Plus:
To find out about more about more about Elsevier Business Intelligence's medical device publications and databases, multi-user access and/or advertising with Medical Devices Today, please contact Kristy Kennedy at (480) 985-9512