Neuros Medical Inc., a medical device company in Willoughby Hills that’s developing high-frequency nerve block technology for patients with intractable post-amputation pain, said it has closed a financing round totaling $38.5 million.
In a news release issued Thursday, Jan. 7, Neuros said the Series BB financing was co-led by new investors Amzak Health and Sectoral Asset Management. The round was joined by InCube Ventures; existing investors U.S. Venture Partners, Osage University Partners and Aperture Venture Partners; and other existing and new investors, Neuros said. Last November, Neuros said in a U.S. Securities and Exchange Commission filing that it had raised $37 million of what then was a planned $42.8 million stock offering.
Joyce Erony of Amzak Health and Marc-Andre Marcotte of Sectoral Asset Management have joined Neuros’ board of directors, Neuros said in Thursday’s release. The company said Andrew Farquharson of InCube Ventures is serving as a board observer.
The financing “provides Neuros with capital to complete enrollment” of the QUEST (High-FreQUEncy Nerve Block for PoST-Amputation Pain) study, and to submit an anticipated application for pre-market approval, the company said in the release. It described QUEST as “a 180-subject, randomized, double-blinded, active sham-controlled clinical trial that is being conducted under an Investigational Device Exemption,” or IDE, and is designed to assess the safety and effectiveness of the company’s Altius High-Frequency Nerve Block system to treat intractable post-amputation pain.
“We are fortunate to have the support of a strong consortium of life sciences venture capital firms and welcome Amzak Health, Sectoral Asset Management and InCube Ventures as investors in Neuros,” said Tom Wilder, Neuros president and CEO, in a statement.
Erony and Marcotte said in a statement issued jointly that the Altius system “has the potential to become a very important treatment alternative for the large, addressable pool of patients who suffer from chronic post-amputation pain, including an opportunity to reduce ongoing dependency on opioids.”
Neuros’ technology was invented by Drs. Kevin Kilgore and Niloy Bhadra of Case Western Reserve University. The company says it “delivers a high-frequency electrical signal to sensory nerves in the peripheral nervous system to block the pain signal.” The system consists of a nerve cuff electrode (also known as a lead) placed around a peripheral nerve and an implantable pulse generator, or IPG.
The company estimates there are nearly 2 million amputees in the United States, with 185,000 new amputations occurring every year.
This article originally appeared in Crain’s Cleveland Business on January 7, 2021.