Devices & Diagnostics

Neuros Medical looks to close $3.5M round, begin pilot clinical study

Neurostimulation company Neuros Medical is looking to collect a $3.5 million round of investment that […]

Neurostimulation company Neuros Medical is looking to collect a $3.5 million round of investment that it would use to launch a pilot study of its pain-relief device.

After earlier this year completing the first successful in-man feasibility study of its pain-blocking device, Willoughby, Ohio-based Neuros plans to conduct a pilot clinical trial that follows a larger number of patients for a longer amount of time, CEO Jon Snyder said.

The pilot study would involve between 10 and 20 patients, and assess the pain-blocking effectiveness of the company’s device over about three months.

More importantly, it would help pave the way for a pivotal, approximately 100-patient trial of the device aimed at obtaining U.S. Food and Drug Administration clearance. The FDA’s stamp of approval would represent Neuros’ most consequential milestone up to that point. Neuros is planning to begin the pivotal trial within about 18 months, Snyder said.

Neuros is developing a device that uses a pacemaker-sized generator and an electrode to stimulate nerves to block pain from amputations — sometimes called stump pain — without the use of drugs. Last year, Neuros received a $1.2 million grant from the U.S. Department of Defense to further develop the device.

In addition to obtaining critical clinical data, Neuros would use its next round of funding to develop a next-generation, fully implantable version of the pain-relief device.

The five-employee startup is also looking to hire a few new employees, such as a vice president of clinical and regulatory affairs and an engineer or two, Snyder said.

One of Neuros’ existing investors, Cleveland venture firm Glengary, will lead its next round of funding. Other existing and new investors will participate, but the company is also looking to add more new investors before the anticipated  close of the round in the first quarter of 2012.

“We were extremely encouraged by the results of this year’s feasibility study, which proved to us that the device is not only safe but highly efficacious,” said Steve Haynes, managing partner with Glengary.

In Neuros’ previous round of funding, it raised $1.8 million. In addition to Glengary, Neuros’ investors include Cleveland’s North Coast Angel FundJumpStart and Case Technology Ventures, plus Ohio Tech Angel Fund in Columbus and Queen City Angels in Cincinnati.

Snyder anticipates market launch of the device sometime in 2014.

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