US-based medical technology company electroCore has agreed to acquire healthcare technology company NeuroMetrix, including its Quell platform.
Under the terms of the agreement, a subsidiary of electroCore will merge with NeuroMetrix and NeuroMetrix will become a wholly owned subsidiary of electroCore.
NeuroMetrix shareholders will receive the equivalent of the balance of NeuroMetrix’s net cash at closing, subject to certain adjustments and deductions.
The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close late in the first quarter of 2025.
NeuroMetrix chairman and CEO Shai Gozani said: “This announcement represents the culmination of our strategic review process announced in February 2024, and marks a positive outcome for the company’s shareholders.
“Through this transaction, we will efficiently return balance sheet cash to our shareholders while providing potential upside through the CVR.
“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.
“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.”
NeuroMetrix is a healthcare company developing and marketing neurotechnology devices to address unmet needs in the chronic pain and diabetes markets.
The company offers Quell, a wearable, app and cloud-enabled neuromodulation platform indicated for fibromyalgia symptoms (Quell Fibromyalgia) and lower-extremity chronic pain.
Quell Fibromyalgia is a prescription, non-invasive, nerve stimulation device authorised by the US Food and Drug Administration (FDA) and is covered by 27 US patents.
NeuroMetrix also offers DPNCheck, a point-of-care screening test for peripheral neuropathy.
The acquisition does not include the DPNCheck technology and business, which NeuroMetrix will divest before the closing of the transaction.
ElectroCore said the acquisition would expand its product portfolio of non-invasive therapies for medical conditions and general wellness product offerings.
ElectroCore CEO Dan Goldberger said: “This acquisition will immediately increase our addressable market, and diversify our portfolio of non-pharmaceutical, non-invasive nerve stimulation offerings.
“We are incredibly excited to add the Quell product lines to our portfolio and we expect this acquisition to be accretive to our top and bottom lines.
“Following the transaction, we expect ECOR to be the leading publicly traded neuromodulation platform focused on wellness and chronic pain.”
