In an SEC filing, Neuros Medical Inc. of Willoughby Hills said it has raised $37 million of a planned $42.8 million stock offering.
The company, which is developing a patented therapy for the treatment of chronic, post-amputation pain with a high-frequency electrical signal, said in the filing that it is not being made in connection with a business combination transaction, such as a merger, acquisition or exchange offer. It offered no other explanation for the offering.
So far, 24 investors have purchased the equity, according to the filling.
Neuros Medical’s technology was created by Drs. Kevin Kilgore and Niloy Bhadra of Case Western Reserve University’s Department of Biomedical Engineering and MetroHealth Medical Center. The company was formed in 2008 by longtime biotech executive Jon Snyder with Kilgore and Bhadra.
The company’s Altius system consists of an implantable generator with an integrated rechargeable battery and external devices. In 2018, Crain’s reported that company studies had shown that the device offers a pain reduction rate of about 80% to 85%.
In 2017, the company raised $20 million to finish a clinical trial involving 130 patients who suffer from post-amputation pain.
At that time, U.S. Venture Partners of Menlo Park, Calif., led an investor group that included Cleveland’s JumpStart Inc. and Boston Scientific, Aperture Venture Partners of New York and Osage University Partners of Philadelphia.
Earlier funding rounds were supported by, among others, local investors including Glengary LLC JumpStart, North Coast Angel Fund (now North Coast Ventures) and RiverVest.
This article originally appeared in Crain’s Cleveland Business on November 11, 2020.