Neurostimulation device company Neuros Medical Inc. has landed $3.5 million in its second round of funding from a handful of investors including medical device powerhouse Boston Scientific (NYSE:BSX).
The company’s device, called the Electrical Nerve Block, comprises a pacemaker-sized generator and a lead that wraps around a peripheral nerve, and delivers stimulation to block pain. The four-year-old company will use the money to add staff and continue testing of the Electrical Nerve Block, it said in a statement.
Last year, the company completed the first in-man feasibility study of its device and it is now in the process of a pilot clinical trial in patients experiencing pain from amputated limbs. That trial should yield results by year’s end, said CEO Jon Snyder.
Neuros raised $1.8 million in its first round of funding in 2009 and received a $1.5 million grant from the U.S. Department of Defense last year.
New investors RiverVest Venture Partners, Blue Tree Allied Angels and ModelVest participated in the round, as did previous investors Case Tech Ventures, JumpStart Ventures, NorthCoast Angel Fund, Ohio Tech Angel Fund, Queen City Angel Fund III and Physician Investment Group.
St. Louis, Missouri-based RiverVest has done well recently with its healthcare investments. The venture firm said it exited four healthcare portfolio companies last year with sales to Medtronic and Pfizer. Ohio Tech Angel Fund and Blue Tree Allied Angels were both recognized recently as two of the most active groups in healthcare deals over the last 12 months, according to the Q1 2012 Halo Report (pdf).
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Boston Scientific already has a stake in the neurostimulation market with its implantable Precision Plus system and subsidiary Intelect Medical, a Cleveland Clinic spinoff it acquired for $78 million last year. Snyder couldn’t disclose any more details about BSX’s investment in Neuros.
Medtronic and St. Jude Medical are leaders in the growing neuromodulation market, which is also seeing activity from startups including SPR Therapeutics in Cleveland and Nervomatrix.
Read all of our Neuros Medical posts.
Veronica Combs contributed to this report.
[Photo from Neuros Medical]
