electroCore Acquires NeuroMetrix, Strengthens Bioelectronic Platform
Deal News | Dec 17, 2024 | Tullis-Dickerson & Co Inc
electroCore, Inc., a company specializing in bioelectronic medicine and wellness, plans to acquire NeuroMetrix, Inc., a healthcare company known for neurotechnology devices, including the Quell platform. The acquisition aims to position electroCore as a significant player in non-invasive health and wellness treatments. Quell is noted for treating fibromyalgia symptoms and chronic pain, expanding electroCore's portfolio into large markets for unmet treatment needs. The transaction awaits shareholder approval and SEC filings, with completion expected in early 2025. This strategic move is projected to enhance electroCore’s market opportunities and technological capabilities, with an expectation of revenue growth and diversification of product offerings. NeuroMetrix will divest its DPNCheck technology before closing. Financially, NeuroMetrix reported revenue of $600,000 for Q3 2024, with Quell revenue up by 50% year-over-year. The acquisition terms include payment in cash at closing plus a contingent value right, focusing on further innovation and commercial scale.
Sectors
- Healthcare Technology
- Medical Devices
Geography
- United States – Both electroCore and NeuroMetrix are based in the U.S., and the article focuses on the acquisition transaction within this region.
Industry
- Healthcare Technology – The article discusses companies involved in developing technologies for healthcare, specifically neurotechnology and bioelectronic medicine.
- Medical Devices – Both electroCore and NeuroMetrix are involved in the development and commercialisation of medical devices, like the Quell platform for chronic pain relief.
Financials
- $600,000 – NeuroMetrix's total revenue for the three months ended September 30, 2024.
- $184,000 – Revenue from Quell products, showing a 50% increase from the previous year.
- $2.1 million – NeuroMetrix's reported operating expenses for the third quarter of 2024.
- $1.5 million – Net loss reported by NeuroMetrix for the quarter ending September 30, 2024.
- $500,000 – Maximum aggregate royalty on net sales of prescription Quell products over two years following the closing of the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| electroCore, Inc. | Bidding Company | Company | A bioelectronic medicine and wellness company entering into an acquisition agreement with NeuroMetrix. |
| NeuroMetrix, Inc. | Target Company | Company | A healthcare company specializing in neurotechnology devices, being acquired by electroCore. |
| Tullis-Dickerson & Co Inc. | Private Equity Firm | Company | The Private Equity firm associated with electroCore. |
| Dan Goldberger | CEO of electroCore | Person | Chief Executive Officer of electroCore, responsible for strategic decisions and transactions. |