CWRU‘s pain neurostimulation spinout has secured series BB funding ahead of a 180-patient trial.

Neuros Medical, a US-based pain treatment spinout of Case Western Reserve University, raised $38.5m yesterday in a series BB round backed by spinout-focused investment firm Osage University Partners. Investment advisory firm Sectoral Asset Management and Amzak Health, a vehicle for asset management Amzak Capital Management, co-led the round with further from participation  InCube Ventures, US Venture Partners, Aperture Venture Partners and undisclosed investors. A regulatory filing suggests most of the money was secured in November 2020. Founded in 2008, Neuros Medical has designed a medical implant for treating intractable pain following amputation surgery. The implant is a pacemaker-sized generator that directs high-frequency electrical pulses into the peripheral nervous system and counteracts signals which tell the body to feel pain. The concept originates from Case Western research co-led by Kevin Kilgore and Niloy Bhadra, two adjunct assistant professors at the university’s Department of Biomedical Engineers. Neuros will use the funding to complete enrolment for a 180-patient clinical study of its device. Proceeds will also help it prepare for pre-market regulatory submissions. Joyce Erony and Marc-Andre Marcotte, respective managing partners at Amzak Health and Sectoral Asset Management, have joined its board of directors while InCube Ventures co-founder Andrew Farquharson has been appointed as observer. Neuros Medical has raised at least $71.3m to date. The company closed a $20m series AA round led by US Venture Partners in 2017, also winning backing from Osage and medical device producer Boston Scientific, as well as Aperture Venture Partners and JumpStart. Boston Scientific and venture capital firm Glengary previously co-led a $3.5m round in 2012 backed by JumpStart, Ohio Tech Angel Fund, NorthCoast Angel Fund, Queen City Angel Fund III, RiverVest Venture Partners, Physician Investment Group, ModelVest and Blue Tree Allied Angels. Glengary, Ohio Tech Angel Fund and Queen City Angels joined assorted private investors for Neuros’s $1.8m seed round in 2009, following a $375,000 deal earlier that year backed by Case Technology Ventures, a university venture fund for Case Western, together with JumpStart Ventures.

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