Nerve stimulation company electroCore has signed an agreement to acquire NeuroMetrix and its Quell wearable device aimed at fibromyalgia and chronic pain.
The deal, valued at about $9 million in cash to start, will see NeuroMetrix become an electroCore subsidiary—but, beforehand, the company plans to sell off its point-of-care screening test for peripheral neuropathy, DPNCheck, to add to the total proceeds.
“This announcement represents the culmination of our strategic review process announced in February 2024, and marks a positive outcome for the Company’s shareholders,” NeuroMetrix CEO Shai Gozani, Ph.D., said in a statement.
“A further advantage of this transaction is that we expect patients with chronic pain to have expanded access to our novel and proprietary Quell wearable neuromodulation technology through the commercial channel that electroCore has built,” Gozani added. “Although the DPNCheck platform is not included in the acquisition, we expect to divest this business such that patients and physicians continue to benefit from its unique and important diagnostic capabilities.”
The two companies expect to finalize the terms and close the transaction in the first quarter of 2025, which will include limited royalties on Quell sales over a two-year period.
The app- and cloud-powered neuromodulation platform includes a noninvasive stimulator worn as a sleeve around the lower leg. A previous randomized study found improvements in reported quality of life among cancer patients whose neuropathy was linked to their chemotherapy regimen.
“We are confident we can leverage our established distribution channels, especially the VA Hospital System, to accelerate adoption of the Quell Fibromyalgia solution,” said electroCore CEO Dan Goldberger in a separate announcement.
“NeuroMetrix has spent many years developing the Quell commercial asset, and electroCore has developed a strong commercial organization for our own prescription and direct-to-consumer nerve stimulation solutions. This acquisition will immediately increase our addressable market, and diversify our portfolio of non-pharmaceutical, non-invasive nerve stimulation offerings,” Goldberger added. “Following the transaction, we expect ECOR to be the leading publicly traded neuromodulation platform focused on wellness and chronic pain.”
“We believe revenue growth from the Quell product line can be accelerated quickly in our established channels and longer term, we are excited about possible label extensions, as well as leveraging the Quell mobile app platform,” he said.
DPNCheck, meanwhile, employs a hand-held device to measure nerve conduction velocity and responses to identify potential damage and help standardize diagnoses. NeuroMetrix launched its version 2.0 of the device in January 2023.