New Investment Opportunity: Theranica
Prescription digital therapeutics for migraine pain treatment
- Novel, patented MedTech device, clinically proven to treat migraine, based on cutting-edge technology delivered on the arm
- Superior results to traditional migraine medication with no drug-related side-effects
- Market of over 40M people in the US; device covered by insurance for 23M
- Costco distribution partnership
- Founders include Shimon Eckhouse, pioneering entrepreneur in Israeli MedTech with over 30 years' experience in cutting-edge device invention, development, and investment
- $5M extension to $45M Series C initial closing led by New Rhein
BOOK A CALL
with your Investor Relations representative
Dear Josb,
Migraine headaches are a chronic condition affecting more than one billion individuals worldwide each year - over 40 million in the US alone, with especially high prevalence among young adults and females. Common pharmaceutical treatments often have unfavorable side effects and limited efficacy, leaving patients reluctant to rely on long-term drug treatments.
OurCrowd is investing in Theranica whose innovative, proprietary Nerivio device is a digitally connected wearable arm band that utilizes remote neurostimulation to treat migraine. The details in this email are based on information received from, and verified solely by, the company.
The Problem
Migraine affects 40 million people in the US and one billion worldwide. Standard pharmaceutical treatments have an unsatisfactory safety/efficacy profile due to unfavorable side effects. Over 50% of patients prescribed with the most common medications to treat acute migraine do not renew their prescription after the first 12 months. Current migraine-treatment devices tend to require placement straight on the forehead or other intrusive locations, some lack FDA approval for adolescents where migraine prevalence is high, and most do not show statistically significant evidence of pain relief.
The Solution
Electric stimulation from the Theranica's Nerivio device strapped on the arm triggers a pain-killing response from the central nervous system that is targeted to the source of migraine symptoms in the brain. Nerivio's patented system of remote electrical neuromodulation (REN) activates a patient's pain inhibition mechanism – a natural system which was found to be deficient in people with migraines. In response to the stimulus from Nerivio, the brainstem selectively releases the body's chemical messengers, norepinephrine and serotonin, inhibiting the pathway of the migraine.
The Traction
Nerivio has FDA De Novo approval and CE clearance for acute treatment of migraines and is under FDA review for preventive treatment. Since FDA approval in 2019, the company has established a network of over 2,500 US physicians who have prescribed Nerivio to over 35,000 patients in the US. Nerivio secured a unique HCPCS medical billing code in the US, and is currently covered by insurance for an initial 23 million policy holders who are now eligible to receive reimbursement for a Nerivio prescription.
Migraine sufferers can also obtain a prescription for Nerivio through Theranica's "Get Nerivio" digital platform which puts the patient directly in contact with a Nerivio-trained physician through a telemedicine consultation. Theranica also established a partnership with Costco whereby members of the Costco Membership Prescription Pharmacy (CMPP) with a Get Nerivio prescription can fulfill their prescription at Costco for only $130 out of pocket.
In 2022, Nerivio sales reached 2,000 units per month. The company forecasts net revenue to rise 3X in 2023, 5X in 2024, and a further 3X in 2025 as insurance coverage expands.
In addition to its clinically proven treatment for migraine, the company has a roadmap to expand the use of its platform to other diseases.
The Market
In the US, more than 40 million people suffer from migraine headaches. On a global scale, it is estimated that migraines affect more than one billion people. In the US alone, over $3B was spent in 2021 on migraine medications. The leading treatments for migraine are all pharmaceuticals. There are a number of generic drugs available for the treatment of migraine, all with low price points, but with unfavorable side-effect profiles. Recently a wave of new drugs have been approved for the treatment of migraine, including 'biologics' with prices ranging from $600-$1,500 per treatment ($250-$400 copay).
The Team
Theranica was founded by Shimon Eckhouse, founder of more than 20 startups including many in the MedTech sector, as well as other seasoned entrepreneurs. The company's medical and scientific team includes a solid group of PhD's in neuroscience, backed by a medical advisory board which includes the world's top headache specialists.
The Round
Theranica is raising a $5M extension to a $45M initial closing of its Series C round. 60% of the Investment Amount of each investor is invested at closing and 40% of the Investment Amount of each investor will be invested pursuant to a milestone closing, if and when the milestones occur, or if the lead investor decides to waive the achievement of the milestones. The round is led by New Rhein, a Philadelphia based venture capital firm with an expertise in healthcare investment. Other existing investors in the company include Shimon Eckhouse, aMoon, LSVP, and Lionbird. The proceeds from the round will be used to expand US sales and marketing including efforts to increase insurance coverage, and to apply for additional regulatory approvals starting with preventative treatment for migraine.
Meet the CEO
We're hosting a webinar/conference call on Monday, December 12th, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Alon Ironi and learn more about Theranica.
Can't make the webinar? Register and we will send you a recording of the call.
The Theranica Solution
Nerivio's remote electrical neuromodulation technology is based on cutting-edge science and understanding of what causes migraines. The company explains that migraine symptoms are manifest by nociceptive messages from the trigeminal nerve, processed in the brainstem pain processing center, and propagated to other regions in the brain. Remote electrical neuromodulation (REN) from Nerivio on the arm activates a patient's endogenous pain inhibition mechanism, called conditioned pain modulation (CPM), which was found to be deficient in people with migraines. In response to the stimulus from Nerivio, the brainstem selectively releases norepinephrine and serotonin into the trigeminal nucleus caudalis, inhibiting the pathway of the migraine.
Nerivio devices are wirelessly connected through a dedicated smartphone app to a HIPAA-compliant server which allows patient migraine data to be utilized either by their healthcare professionals to monitor the patient's condition, or deidentified by Theranica to glean useful clinical insights from the real-world data. Theranica can also use this patient data to deliver personalized notifications, alerts, and tips to users, aiming at improving the disease management.
Theranica has several filed and issued patents protecting this technology, and its usage for treating migraines.
Next steps:
0 Comments