MicroTransponder Secures $65M Funding for Stroke Rehabilitation Neurostimulator

MicroTransponder, a company specializing in neurostimulation technology for stroke rehabilitation, has successfully raised $65 million in a Series F funding round. The investment will support the expansion of the company's commercial reach for its FDA-approved Vivistim system, a neurostimulator implant designed to aid recovery in stroke patients.

Vivistim System: A Novel Approach to Stroke Rehabilitation

The Vivistim system targets the vagus nerves in the neck, delivering electrical pulses during exercise regimens to help retrain the brain after damage caused by ischemic stroke. FDA-approved in 2021, the device is specifically intended for patients who have lost mobility in their arms and hands following a stroke.

MicroTransponder's CEO, Richard Foust, highlighted the system's impact, stating, "We've built programs in 20% of Joint Commission Comprehensive Stroke Centers and 50% of Becker's 2024 100 Great Neuro and Spine Programs by presenting Vivistim as the evidence-based chronic stroke recovery solution that's been missing from the stroke continuum of care."

Clinical Efficacy and Patient Benefits

Earlier this year, MicroTransponder released real-world data demonstrating the effectiveness of an initial six-week therapy protocol. The regimen, which includes in-clinic occupational or physical therapy, led to improvements in upper extremity control for stroke patients.

A key feature of the Vivistim system is its versatility, allowing patients to initiate their own 30-minute training sessions at home by placing a magnet over the implant. This capability enhances the accessibility and frequency of rehabilitation exercises, potentially improving outcomes for stroke survivors.

Investment Details and Future Outlook

The $65 million Series F funding round was led by US Venture Partners, with participation from new investors Gilde Healthcare and Longitude Capital. Returning investors included Osage University Partners, Action Potential Venture Capital, GPG Ventures, The Vertical Group, and Exceller Hunt Ventures.

This latest investment follows a $73 million Series E financing round completed in late 2022, indicating strong continued interest in MicroTransponder's technology and market potential. The substantial funding is expected to fuel the company's efforts to expand its market presence and potentially revolutionize the standard of care for stroke treatment across the United States.