Stroke Tech Developers Kandu and Neurolutions Merge, Secure $30M in Funding

In a significant move within the stroke recovery technology sector, Kandu Health and Neurolutions have announced their merger, accompanied by a substantial $30 million funding round. This strategic combination aims to revolutionize post-stroke care by integrating advanced digital platforms with FDA-cleared brain-controlled hardware.

Merger Details and Funding

Kandu Health, a spin-off from stroke intervention developer Imperative Care, will absorb Neurolutions to create a comprehensive stroke recovery solution. The newly formed entity, which will retain the Kandu name, has secured $30 million in fresh financing. The funding round was co-led by Ally Bridge Group and Amed Ventures, with additional support from existing investors of both companies.

Leo Petrossian, formerly the CEO of Neurolutions, will lead the merged company as its new chief executive. Kirsten Carroll, previously the CEO of Kandu Health, will transition to the role of general manager.

Technological Integration

The merger brings together two complementary technologies:

1. Kandu Health's AI-supported digital health solutions, which have demonstrated success in reducing hospital readmission rates and improving functional outcomes for stroke patients recovering at home.

2. Neurolutions' IpsiHand system, an FDA-cleared brain-computer interface (BCI) that utilizes an EEG headset to translate neural activity into commands for a motorized hand brace, aiding in the rehabilitation of disabled arms.

This combination is expected to offer a seamless continuum of care for stroke survivors, spanning from the immediate post-acute phase through chronic rehabilitation and recovery.

Market Significance and Reimbursement

The merger positions the new Kandu as a leader in the stroke recovery space. Notably, the IpsiHand system is the first BCI technology to receive both FDA clearance for stroke rehabilitation and a reimbursement code from the Centers for Medicare and Medicaid Services (CMS). This dual achievement underscores the potential market impact of the merged entity's offerings.

Petrossian emphasized the importance of this union, stating, "This merger positions Kandu, Inc. as a leader in the stroke recovery space and allows us to offer a seamless continuum of care, from the immediate post-acute phase through chronic rehabilitation and recovery."