Proceeds to Fund U.S. Commercial Expansion of Migraine Treatment Device, Nerivio®
Financing Led by Philadelphia-Based New Rhein Healthcare, Selected Additional Co-Investors to Join Round at Final Closing
NETANYA, Israel and MONTCLAIR, N.J., Aug. 29, 2022 /PRNewswire/ -- Theranica, a prescribed digital therapeutics company developing advanced neuromodulation devices for migraine and other idiopathic pain conditions, today announced the closing of its Series C funding round, with a first closing of $45 million.
Philadelphia-based New Rhein Healthcare Investors led the round, with wide participation of existing investors aMoon, Lightspeed Venture Partners, LionBird, Takoa Invest, and Corundum Open Innovation. Due to high investor interest, the company has extended the financing round, planning a final closing in October. Proceeds of the new funds will focus on expanding the company's commercial activity in the U.S.
"In spite of several decades of new medications, millions of individuals still suffer from frequent debilitating migraine headaches," said Alon Ironi, CEO of Theranica. "Over the last couple of years, we have verified the three fundamental conditions of a successful new prescribed therapy in the U.S.: healthcare providers have confidence in prescribing our Nerivio for treating migraine, patients get significant clinical benefit from using it, and Payors realize the importance of providing their insured members with access to this therapy. With this triad demonstrated, we needed the appropriate funding to unleash the huge potential of Nerivio in the U.S."
Ironi added, "New Rhein's investment team is a group of seasoned pharma executives with vast international experience in the clinical and business aspects of the healthcare domain. Having them on the team is a powerful multiplier in our journey to bring effective, drug-free therapeutic options to millions of people with migraine, and in the future to millions of people with other chronic pain diseases."
Nerivio is an FDA-cleared, prescribed, smartphone-controlled, drug-free wearable device for the treatment of episodic and chronic migraine in people aged 12 and older. Uniquely worn on the upper arm at the onset of a migraine attack, Nerivio alleviates migraine headache and associated symptoms by utilizing remote electrical neuromodulation to trigger an endogenous analgesic mechanism, known as conditioned pain modulation.
Dr. Greg Parekh, Founder and Managing Partner at New Rhein Healthcare Investors said, "A sequence of recent discoveries in neuroscience is driving a paradigm shift in the treatment of neurological diseases. We believe Nerivio represents the first major breakthrough for the non-pharmacological treatment of migraine headaches. We spent a year exploring this market and its participants prior to choosing to invest into Theranica and believe the migraine medical community and patients are at a critical inflection point in their understanding of the benefits of Nerivio. With our pharma backgrounds, we were highly impressed with Theranica's clinical data and user-friendly product design. We look forward to supporting the company in its commercial expansion."
Multiple clinical trials, and several real-world evidence studies with thousands of patients, have shown Nerivio to be comparable to standard of care pharmacological options and able to be used as a standalone treatment or in combination with existing treatments. Eligible for insurance coverage and available to patients seeking cost-effective drug-free therapies for migraine, Nerivio can be prescribed by any certified healthcare provider in the U.S. and is shipped to patients' homes through several specialty pharmacies.
"More than half of the 40 million Americans who live with migraines are unsatisfied with their current treatments. We are encouraged by the amazing feedback we have received from the tens of thousands of patients already using Nerivio and are determined to make Nerivio a first-line therapy," said Dr. Shimon Eckhouse, Chairman and Co-Founder of Theranica. "We are pleased to have New Rhein join Theranica as the lead investor of round C and as a partner that will play a key role in building and maximizing the value of the company. Theranica's excellent clinical data and positive feedback from both patients and providers, combined with our strong financial position, will enable us to bring our solutions to millions of patients in the U.S. and worldwide."
Theranica is a prescribed digital therapeutics company dedicated to creating effective, safe, affordable, low-side effect therapies for idiopathic pain conditions. The company's award-winning flagship product, Nerivio®, is the first FDA-cleared smartphone-controlled prescribed wearable device for acute treatment of migraine, recently surpassed a quarter of a million treatments administered to date. Theranica is expanding its proprietary technology to develop solutions for additional idiopathic pain conditions. Nerivio has received FDA authorization and CE mark for use in acute treatment of episodic and chronic migraine in adult and adolescent patients.
About New Rhein
New Rhein applies a private equity business model to life sciences venture capital investing, focusing on proven assets used in new ways (i.e. new delivery forms, new indications) that offer compelling health economic value to payors. New Rhein combines significant deal-making expertise with deep operating experience, it takes significant stakes in a small number of companies and actively manages their value creation. In this way, New Rhein limits science-based risk and concentrates on development and execution. Prior investments have included medicines or medical devices for Alzheimer's disease, ophthalmic disorders, respiratory disease, critical care, urology and oncology. Our managing partners and advisors are former senior executives of leading pharmaceutical firms with outstanding operational and investment track records.