MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--NeuroPace, Inc., a Silicon Valley-based medical technology company, today announced it has raised $67 million in a funding round led by Accelmed Partners with participation from an unnamed strategic investor, Revelation Partners, Soleus Capital, and returning investors KCK Group and OrbiMed Advisors. The financing includes $33 million of new equity capital and $34 million from convertible debt provided by current investors from a prior funding round. An additional $27 million in committed capital is available in a second tranche. The funds will be used to accelerate commercial growth and to pursue expanded indications for the RNS® System, the company’s innovative technology for refractory focal epilepsy.
“This round of financing will enable us to execute our commercial strategy and maximize therapy adoption at comprehensive epilepsy centers,” said Mike Favet, CEO of NeuroPace. “It will also fund a clinical trial to expand our indication to patients under 18 years old, a population whose quality of life is especially impacted by epilepsy. We now have the highest seizure reduction rates reported by any epilepsy neuromodulation device, a robust product innovation pipeline, and market expansion opportunities. With this additional funding, we can bring RNS System’s life-changing technology to significantly more people who are living with refractory epilepsy.”
The RNS System is the first and only FDA approved brain-responsive neurostimulator designed to prevent seizures before they start. Recently published data show an unprecedented 82% median seizure reduction at three or more years1, as well as enduring improvements in quality of life and cognition.2 In addition to proven clinical benefits, the RNS System is the only device that continuously monitors and records EEG data, providing data-driven insights that enable physicians to optimize their patients’ epilepsy care.
“NeuroPace has set the standard for epilepsy neuromodulation technology, with its unique ability to continuously monitor EEG data and respond with closed-loop stimulation,” said Evan Norton, General Partner, Accelmed Partners and new NeuroPace board member. “The company’s differentiated technology, unmatched clinical outcomes, and the large unmet market need it addresses make it a compelling investment in line with our goal of supporting healthtech companies poised for significant growth. We are enthusiastic about the team and excited about the market potential of this game-changing therapy.”
1 in 26 Americans will develop epilepsy in their lifetime, with approximately 150,000 new cases of epilepsy diagnosed annually. An estimated 3.4 million Americans currently live with epilepsy and there are 1 million refractory individuals who do not respond to anti-seizure medications. Epilepsy is a chronic disorder, the hallmark of which is recurrent, unprovoked seizures. More people live with epilepsy than autism spectrum disorder, Parkinson’s disease, multiple sclerosis and cerebral palsy – combined.3
About the RNS® System
The RNS System is the world’s first and only closed-loop brain-responsive neurostimulation system designed to prevent epileptic seizures at their source. The RNS System treats seizures by continuously monitoring brain waves, recognizing each patient’s unique “seizure onset fingerprint,” and automatically responding with imperceptible electrical pulses before seizures occur. Physicians can view their patient’s EEG data on a secure website and program the device to personalize therapy for each individual. Unlike anti-epileptic drugs or resective surgery, neuromodulation outcomes typically improve with time and do not cause the cognitive side effects that can be associated with those alternatives. The RNS System is now available at most comprehensive epilepsy centers in the United States and is widely covered by insurance.
The RNS® System is an adjunctive therapy for adults with refractory, focal onset seizures with no more than 2 epileptogenic foci. See important safety information at www.neuropace.com/safety/.
NeuroPace is dedicated to developing groundbreaking technology and advancing brain science to improve the quality of life for millions of individuals who suffer from neurological disorders. The company’s first product, the RNS System, is the only FDA-approved brain-responsive neurostimulator for the treatment of focal onset refractory epilepsy. In addition to treating epilepsy, brain-responsive neuromodulation holds the promise of treating other brain disorders that impact quality of life for millions of patients throughout the world.
About Accelmed Partners
Accelmed Partners is a leading U.S. based private equity firm focused on investments in commercial stage HealthTech companies. Accelmed is based in New York City.
- Razavi, B. et al, Epilepsia, 2020
- Nair, D. et al, Neurology, 2020
Epilepsy Foundation. “Facts about Seizures and Epilepsy.”