electroCore to Acquire Neurotech Company NeuroMetrix

NeuroMetrix has begun a merger agreement in which electroCore, a bioelectric medicine and wellness company, will acquire it. Both companies’ boards have unanimously approved the transaction.

electroCore touts a non-invasive vagus nerve stimulation (nVNS) technology platform. The company focuses on commercializing devices to manage and treat certain conditions and consumer product offerings using nVNS to promote general wellbeing and performance.

NeuroMetrix develops and commercializes neurotechnology devices to tackle unmet needs in chronic pain and diabetes. The company’s wearable or handheld devices are enabled by mobile apps, enterprise software, and cloud-based systems.

The company has two brands: Quell, a wearable neuromodulation platform, and DPNCheck, a point-of-care screening test for peripheral neuropathy.

A subsidiary of electroCore will merge with NeuroMetrix, at which point NeuroMetrix will become a wholly-owned electroCore subsidiary. NeuroMetrix shareholders will be entitled to receive the equivalent of the balance of net cash at the transaction’s close, which is expected to be late in Q1 of 2025. The company expects that balance to be about $9 million in aggregate.

NeuroMetrix chairman and CEO Shai Gozani, MD, Ph.D. said the announcement represents the finish of its strategic review process revealed in February 2024. Dr. Gozani said the transaction is positive for shareholders and will efficiently return balance sheet cash to them while offering potential upside through contingent value right (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,” Dr. Gozani told the press. “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.”