electroCore to Acquire NeuroMetrix, Gaining Access to its Quell Platform and Positioning Itself as a Significant Player in Non-Invasive Bioelectronic Medicine and Wellness
electroCore (ECOR) has announced a definitive agreement to acquire NeuroMetrix (NURO), focusing on its Quell platform while excluding the DPNCheck business. The acquisition aims to strengthen electroCore's position in the bioelectronic health and wellness sector. Quell is a wearable neuromodulation platform FDA-authorized for fibromyalgia symptoms and lower-extremity chronic pain treatment.
The transaction value will equal NURO's net cash balance at closing, with NURO shareholders receiving non-tradeable contingent value rights (CVRs). Each CVR includes rights to DPNCheck divestiture proceeds and up to $500,000 in Quell product royalties over two years post-closing. The deal is expected to close by Q1 2025, subject to NURO shareholder approval.
NeuroMetrix reported Q3 2024 results with total revenue of $600,000, including Quell revenue of $184,000 (50% YoY increase), and a net loss of $1.5 million.
electroCore (ECOR) ha annunciato un accordo definitivo per acquisire NeuroMetrix (NURO), concentrandosi sulla sua piattaforma Quell escludendo il business DPNCheck. L'acquisizione mira a rafforzare la posizione di electroCore nel settore della salute e del benessere bioelettronico. Quell è una piattaforma di neuromodulazione indossabile autorizzata dalla FDA per il trattamento dei sintomi della fibromialgia e del dolore cronico agli arti inferiori.
Il valore della transazione corrisponderà al saldo di cassa netto di NURO al momento della chiusura, con gli azionisti di NURO che riceveranno diritti di valore contingente non commerciabili (CVR). Ogni CVR include diritti sui proventi della dismissione di DPNCheck e fino a $500.000 in royalties sui prodotti Quell nei due anni successivi alla chiusura. Si prevede che l'accordo si chiuda entro il primo trimestre del 2025, soggetto all'approvazione degli azionisti di NURO.
NeuroMetrix ha riportato i risultati del terzo trimestre 2024 con un fatturato totale di $600.000, inclusi $184.000 di fatturato Quell (aumento del 50% rispetto all'anno precedente) e una perdita netta di $1,5 milioni.
electroCore (ECOR) ha anunciado un acuerdo definitivo para adquirir NeuroMetrix (NURO), centrándose en su plataforma Quell mientras excluye el negocio de DPNCheck. La adquisición tiene como objetivo fortalecer la posición de electroCore en el sector de la salud y el bienestar bioelectrónicos. Quell es una plataforma de neuromodulación portátil autorizada por la FDA para el tratamiento de síntomas de fibromialgia y dolor crónico en las extremidades inferiores.
El valor de la transacción igualará el saldo de efectivo neto de NURO al cierre, con los accionistas de NURO recibiendo derechos de valor contingente no comerciales (CVR). Cada CVR incluye derechos sobre los ingresos por la desinversión de DPNCheck y hasta $500.000 en regalías de productos Quell durante dos años después del cierre. Se espera que el acuerdo se cierre en el primer trimestre de 2025, sujeto a la aprobación de los accionistas de NURO.
NeuroMetrix reportó resultados del tercer trimestre de 2024 con ingresos totales de $600.000, que incluyen ingresos de Quell de $184.000 (un aumento del 50% interanual) y una pérdida neta de $1,5 millones.
electroCore (ECOR)는 NeuroMetrix (NURO)를 인수하기 위한 최종 계약을 발표했으며, DPNCheck 사업을 제외하고 Quell 플랫폼에 집중하고 있습니다. 이번 인수는 electroCore의 생체 전자 건강 및 웰빙 분야에서의 입지를 강화하는 것을 목표로 하고 있습니다. Quell은 섬유근육통 증상 및 하지 만성 통증 치료를 위해 FDA 승인을 받은 착용 가능한 신경 조절 플랫폼입니다.
거래 가치는 클로징 시 NURO의 순 현금 잔액과 같으며, NURO의 주주들은 거래 가능한 조건부 가치권(CVR)을 받게 됩니다. 각 CVR에는 DPNCheck 매각 수익에 대한 권리와 클로징 후 2년 동안 최대 $500,000의 Quell 제품 로열티가 포함되어 있습니다. 이 거래는 NURO 주주의 승인을 조건으로 2025년 1분기까지 마무리될 것으로 예상됩니다.
NeuroMetrix는 2024년 3분기 결과를 발표했으며, 총 수익은 $600,000으로, Quell 수익은 $184,000(전년 대비 50% 증가)이고, 순손실은 $1.5백만입니다.
electroCore (ECOR) a annoncé un accord définitif pour acquérir NeuroMetrix (NURO), en se concentrant sur sa plateforme Quell tout en excluant l'activité DPNCheck. L'acquisition vise à renforcer la position d'electroCore dans le secteur de la santé et du bien-être bioélectroniques. Quell est une plateforme de neuromodulation portable autorisée par la FDA pour le traitement des symptômes de fibromyalgie et de douleur chronique aux membres inférieurs.
La valeur de la transaction sera égale au solde de trésorerie net de NURO à la clôture, les actionnaires de NURO recevant des droits de valeur conditionnels non négociables (CVR). Chaque CVR comprend des droits sur les revenus de la cession de DPNCheck et jusqu'à 500 000 $ de redevances sur les produits Quell pendant deux ans après la clôture. L'accord devrait être finalisé d'ici le premier trimestre de 2025, sous réserve de l'approbation des actionnaires de NURO.
NeuroMetrix a publié les résultats du troisième trimestre 2024 avec un chiffre d'affaires total de 600 000 $, y compris un chiffre d'affaires Quell de 184 000 $ (augmentation de 50 % par rapport à l'année précédente), et une perte nette de 1,5 million de dollars.
electroCore (ECOR) hat eine endgültige Vereinbarung zur Übernahme von NeuroMetrix (NURO) bekannt gegeben, wobei der Schwerpunkt auf der Quell-Plattform liegt und das DPNCheck-Geschäft ausgeschlossen wird. Die Übernahme zielt darauf ab, die Position von electroCore im Bereich der bioelektronischen Gesundheit und Wellness zu stärken. Quell ist eine tragbare Neuromodulationsplattform, die von der FDA zur Behandlung von Symptomen der Fibromyalgie und chronischen Schmerzen in den unteren Extremitäten zugelassen ist.
Der Transaktionswert entspricht dem Nettobarbestand von NURO zum Zeitpunkt des Abschlusses, wobei die Aktionäre von NURO nicht handelbare bedingte Wertrechte (CVR) erhalten. Jedes CVR umfasst Rechte an den Erlösen aus der Veräußerung von DPNCheck sowie bis zu 500.000 USD an Quell-Produktlizenzgebühren über zwei Jahre nach dem Abschluss. Es wird erwartet, dass der Deal im ersten Quartal 2025 abgeschlossen wird, vorbehaltlich der Genehmigung der Aktionäre von NURO.
NeuroMetrix berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Gesamterlös von 600.000 USD, einschließlich eines Quell-Erlöses von 184.000 USD (50% Wachstum im Vergleich zum Vorjahr) und einem Nettoverlust von 1,5 Millionen USD.
- Acquisition expected to be accretive to top and bottom lines
- Quell revenue showed 50% year-over-year growth
- Transaction will be paid with cash on hand, not expected to be materially dilutive
- Expands addressable market in $20B chronic pain treatment sector
- Integration with existing VA Hospital System distribution channels
- NeuroMetrix reported Q3 2024 net loss of $1.5M
- Current low revenue base ($600,000 quarterly revenue)
- High operating expenses relative to revenue ($2.1M vs $600k revenue)
Insights
The Quell® platform will strengthen our position as a significant player in the bioelectronic health and wellness sector
Company to discuss acquisition and host investor Q&A in a webcast today at 4:30 p.m. EST
ROCKAWAY, N.J., Dec. 17, 2024 (GLOBE NEWSWIRE) -- electroCore, Inc. (“ECOR,” “electroCore,” or the “Company”) (Nasdaq: ECOR), a commercial-stage bioelectronic medicine and wellness company, announced today it has entered into a definitive agreement to acquire NeuroMetrix, Inc. (“NeuroMetrix” or “NURO”) (Nasdaq: NURO), including its Quell platform, positioning itself as a diversified, commercial-scale player in non-invasive health and wellness treatments.
NURO is a commercial stage healthcare company that develops and commercializes neurotechnology devices to address unmet needs in the chronic pain and diabetes markets. It has two product categories:
- Quell®: a wearable, app and cloud-enabled neuromodulation platform that is indicated for the treatment of fibromyalgia symptoms (Quell Fibromyalgia) and lower-extremity chronic pain (Quell 2.0); and
- DPNCheck®: a point-of-care screening test for peripheral neuropathy, which product line is expected to be divested by NURO prior to consummation of the acquisition
The acquisition of NeuroMetrix will accelerate electroCore’s efforts to become a significant player in the bioelectronic health and wellness sector by expanding its product portfolio of non-invasive therapies for medical conditions and general wellness product offerings, while expanding its technological capabilities through the Quell mobile application and health cloud platform. The transaction does not include the DPNCheck technology and business, which is expected to be divested by NeuroMetrix prior to closing of the transaction.
“We are confident we can leverage our established distribution channels, especially the VA Hospital System, to accelerate adoption of the Quell Fibromyalgia solution,” stated Dan Goldberger, CEO of electroCore, inc. “NeuroMetrix has spent many years developing the Quell commercial asset, and electroCore has developed a strong commercial organization for our own prescription and direct-to-consumer nerve stimulation solutions. 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.”
U.S. consumers spend nearly
NeuroMetrix Historical Financial Results
For the three months ended September 30, 2024, NURO reported:
- Total revenue of
$600,000 - Quell revenue of
$184,000 , a50% increase over the year ago period in 2023 - Operating expenses of
$2.1 million - Net loss of
$1.5 million
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close around the end of the first quarter of 2025. Consummation of the transaction is subject to approval by the shareholders of NURO, and the filing with the Securities and Exchange Commission (the “SEC”) of NURO’s Form 10-K with respect to the fiscal year ended December 31, 2024, in addition to certain customary closing conditions.
Additional information on the transaction can be found in a Current Report on Form 8-K filed by electroCore, Inc. with the SEC.
Transaction and Integration
ECOR will purchase all of the outstanding shares of NURO for the equivalent of NURO’s balance of net cash at the closing of the transaction, after deduction of certain management compensation payments and other severance costs, transaction expenses and other accrued liabilities. NURO stockholders will also receive one non-tradeable contingent value right (the “CVR”) per share of NURO common stock owned. Each CVR will represent the right to receive (i) certain future net proceeds from any divestiture of NURO’s DPNCheck platform that is consummated prior to the closing of the transaction with electroCore and (ii) certain royalties, up to an aggregate maximum of
NURO stockholders will be paid cash at closing. The merger consideration is expected to be paid with cash on hand of the combined company after the consummation of the acquisition. The transaction is not expected to be materially dilutive to ECOR cash or equity at close.
“We plan to focus immediately on growing the prescription Quell Fibromyalgia business through our existing channels, driving both scale and efficiency,” added Mr. Goldberger. “We believe revenue growth from the Quell product line can be accelerated quickly in our established channels and longer term, we are excited about possible label extensions, as well as leveraging the Quell mobile app platform. Sales and Marketing Expense of the combined Company will continue to scale with revenue (primarily commissions) but we expect there to be relatively little long-term impact on other elements of electroCore operating expenses in 2025 and beyond.”
Webcast and Conference Call Information
electroCore’s management team will host a webcast today, December 17, 2024, beginning at 4:30 PM EST. Investors interested in joining the webcast may register by clicking through the following link: Investor Webcast - NURO Transaction
An archived webcast of the event will be available on the “Investors” section of the company’s website at: www.electrocore.com.
About NeuroMetrix, Inc.
NeuroMetrix, Inc. is a commercial stage healthcare company that develops and commercializes neurotechnology devices to address unmet needs in the chronic pain and diabetes markets. The company's products are wearable or hand-held medical devices enabled by proprietary consumables and software solutions that include mobile apps, enterprise software and cloud-based systems. The company has two commercial brands. Quell® is a wearable neuromodulation platform. DPNCheck® is a point-of-care screening test for peripheral neuropathy.
For more information, visit www.neurometrix.com.
About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine and wellness company dedicated to improving health through its non-invasive vagus nerve stimulation (“nVNS”) technology platform. Our focus is the commercialization of medical devices for the management and treatment of certain medical conditions and consumer product offerings utilizing nVNS to promote general wellbeing and human performance in the United States and select overseas markets.
For more information, visit www.electrocore.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws, including under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the merger with NeuroMetrix, Inc., electroCore's business prospects, its sales and marketing and product development plans, future cash flow projections, anticipated costs, its product portfolio or potential markets for its technologies, the availability and impact of payor coverage, the potential of nVNS generally in particular to accelerate training, and other statements that are not historical in nature, particularly those using terminology such as "anticipates," "expects," "believes," "intends," other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to obtain additional financing necessary to continue electroCore's business, sales and marketing and product development plans, the uncertainties inherent in the development of new products or technologies, the ability to successfully commercialize nVNS products, competition in the industry in which electroCore operates and general market conditions. Important risk factors that may cause such a difference include, but are not limited to: (i) the proposed transaction may not be completed on anticipated terms and timing, (ii) a condition to closing of the transaction may not be satisfied, including obtaining shareholder and any regulatory approval, (iii) the anticipated tax treatment of the transaction may not be obtained, (iv) the potential impact of unforeseen liabilities, future capital expenditures, revenues, costs, expenses, earnings, synergies, economic performance, indebtedness, financial condition and losses on the future prospects, business and management strategies for the management, expansion and growth of the businesses of NeuroMetrix and electroCore after the consummation of the transactions, (v) potential litigation relating to the proposed transaction that could be instituted against the parties or their respective directors, (vi) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transactions, (vii) any negative effects of the announcement, pendency or consummation of the transactions on the market price of electroCore’s or NeuroMetrix’s common stock and on their businesses or operating results, (viii) risks associated with third party contracts containing consent and/or other provisions that may be triggered by the proposed transaction, (ix) the risks and costs associated with the integration of, and the ability of electroCore to integrate the Quell business successfully, (x) the risk that disruptions from the proposed transaction will harm the parties’ respective business, including current plans and operations, (xi) the ability of electroCore or NeuroMetrix to retain and hire key personnel and uncertainties arising from any business or leadership changes, (xii) legislative, regulatory and economic developments, and (xiii) the other risks described in electroCore’s or NeuroMetrix’s most recent annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC. No listing of risk factors should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on electroCore’s or NeuroMetrix’s consolidated financial condition, results of operations, or liquidity. All forward-looking statements are made as of the date of this press release, and electroCore undertakes no obligation to update forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law
Additional Information and Where to Find It
In connection with the proposed transaction, NeuroMetrix intends to file a preliminary and definitive proxy statement. The definitive proxy statement and proxy card will be delivered to NeuroMetrix’s stockholders in advance of the special meeting relating to the proposed acquisition. Each of electroCore and NeuroMetrix also plan to file other relevant materials with the SEC in connection with the proposed transaction. INVESTORS IN AND SECURITY HOLDERS OF NEUROMETRIX ARE URGED TO READ THE DEFINITIVE PROXY IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR FURNISHED OR WILL BE FILED OR WILL BE FURNISHED BY EACH OF ELECTROCORE AND NEUROMETRIX WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION, RELATED MATTERS AND THE PARTIES TO THE PROPOSED TRANSACTION. Materials filed by electroCore and NeuroMetrix can be obtained free of charge at the SEC’s website, www.sec.gov. In addition, materials filed by electroCore can be obtained free of charge at electroCore’s website, www.electrocore.com, and materials filed by NeuroMetrix can be obtained free of charge at NeuroMetrix’s website, www.neurometrix.com.
Contact
ECOR Investor Relations
(973) 302-9253
investors@electrocore.com
FAQ
What is the acquisition price for NeuroMetrix (NURO) by electroCore (ECOR)?
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What are the terms of the CVR rights in the ECOR-NURO deal?
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Will the DPNCheck business be included in electroCore's acquisition of NeuroMetrix?
