Cervel Neurotech Inc. recently made known some great news – they were able to put together $14.1 million total in funding. This particular round was participated in by two new investors, as well as existing investors – D. E. Shaw Ventures and Aberdare Ventures.
The company’s CEO, Mr. Eric Meier tells us more about this recent financing in this e-interview with Lead411:
Who are your competitors and how are you different from them?
The treatment of psychiatric disorders is typically managed through one of three ways:
a) Anti-depressants such as : Prozac, Zoloft, Celexa and Wellbutrin. These medications are typically prescribed by the GP or psychiatrists. While effective with some patients, the side effects can be noticeable including sexual dysfunction and GI complications.
b) Non-invasive neuromodulation is becoming increasingly popular in its ability to treat conditions such as depression. The benefits include the ability to non-invasive modulate targeted brain structures. First generation technologies are limited in their ability to only directly stimulate the surface of the brain. Cervel’s technologies provides direct neuromodulation to both surface and deeper regions of the brain.
c) ECT: Electro-convulsive therapy is a well accepted treatment approach from patients in which other therapies have been ineffective. Approximately 100,000 patients are treated annually with this therapy. While effective, this therapy requires that patients be sedated and can lead to short term memory loss.
d) Implantable devices: There are several investigational devices for the treatment of depression under testing including technologies developed by Medtronic and St. Jude Medical. These devices will probably be intended for those patients for whom have failed medications and non-invasive approaches.
What percentage of your marketing budget are spent on the following?
As we are pre-commercial we do not yet have a large marketing budget. The primary use of capital is to support clinical studies and product development.
What do you plan to spend your new funding on? Product development? Marketing?
The proceeds will be used to fund a randomized, sham-controlled clinical study of the use of rTMS and for continued product development necessary to support the clinical trials.
If you are the CEO, what are your biggest challenges?
As with many medical device companies, the challenges are primarily ensuring the clinical trial meets the FDAs guidelines and is efficacious, and that private pay insurance companies embrace the technology and issue positive coverage decisions.
How many employees do you have?
When were you founded?
How much did you revenue increase(if any) this year over last year?
We are pre-commercial and pre-revenue.
Want to learn more about this recent funding? You can read more on it through this news link.