Device company Orthofix International N.V., has entered into an option agreement that provides it with an 18-month option to acquire Transcranial Magnetic Stimulation (TMS) developer eNeura, Inc.
A pioneer in the use of portable, non-invasive devices for the treatment of migraine headache, eNeura received U.S. FDA 510(k) clearance for its SpringTMS® migraine treatment device in 2014, making it the first medical device available to patients in the U.S. for the acute treatment of pain associated with migraine headache with aura, news we covered at the time.
Now Orthofix is to provide a $15 million collateralized loan to support commercialization of SpringTMS in the United States and Europe, in exchange for which it gains the option to acquire eNeura, for $65 million. At that juncture eNeura would repay the unpaid principal payable under the loan. In addition, Orthofix may make future milestone and royalty payments to eNeura.
“This agreement underscores Orthofix’s commitment to pursue new growth opportunities in its BioStim strategic business unit that leverage our core competencies in pulsed electromagnetic field (“PEMF”) product design and manufacturing as well as our third party billing expertise,” said President and Chief Executive Officer Brad Mason. “We believe eNeura’s exciting application of electromagnetic field technology delivers a therapy that addresses a significant unmet need for patients and clinicians in the treatment of migraine headache.”
“Orthofix is an ideal partner for eNeura to expand commercial availability of SpringTMS to migraine patients in the United States and Europe,” commented Dr. David K. Rosen, President and CEO of eNeura. “We look forward to utilizing this financing to advance our product development and commercialization strategy for SpringTMS.”
Source: Business Wire