Kandu Health and Neurolutions Merge to Revolutionize Stroke Care with $30M Funding

In a significant development for the stroke rehabilitation sector, Kandu Health and Neurolutions have announced their merger, backed by a $30 million investment. This strategic move combines Kandu Health's telehealth services with Neurolutions' innovative brain-computer interface (BCI) technology, aiming to transform post-stroke care and improve patient outcomes.

Merger Details and Funding

The newly formed entity, operating under the Kandu name, has secured $30 million in funding co-led by Ally Bridge Group and Amed Ventures. This financial boost will support the company's commercial strategy and further development of their integrated stroke recovery solutions.

Leo Petrossian, formerly of Neurolutions, will lead the merged company as CEO, while Kirsten Carroll, previously CEO of Kandu Health, will serve as general manager. The merger builds upon a partnership established between the two companies in 2023, which positioned Kandu Health's physicians to assess stroke patients for potential benefits from Neurolutions' IpsiHand system.

IpsiHand: Breakthrough BCI Technology for Stroke Rehabilitation

At the heart of this merger is Neurolutions' IpsiHand system, a groundbreaking BCI technology cleared by the FDA in 2021 for stroke rehabilitation. The IpsiHand consists of a non-invasive headset that uses electroencephalography (EEG) electrodes to record brain activity, a tablet computer for data analysis, and a motorized hand brace.

The system interprets brain signals and translates them into commands that move the hand brace, helping stroke patients regain grasping ability. In clinical trials, all 40 participants demonstrated motor function improvements over a 12-week period.

Unlike other BCI technologies under development, IpsiHand is worn externally and does not require brain implants. This non-invasive approach sets it apart from companies like Synchron and Neuralink, which are developing implantable BCI devices.

Integrated Care and Reimbursement Progress

The merger aims to provide a seamless continuum of care for stroke patients, from the immediate post-acute phase through chronic rehabilitation and recovery. By integrating IpsiHand into Kandu Health's existing stroke support services, the company seeks to address the challenges faced by stroke survivors during their recovery journey.

Notably, the Centers for Medicare and Medicaid Services (CMS) created a procedure code and made a benefit category determination for IpsiHand in 2024, paving the way for improved access and reimbursement. This development, coupled with the first sales of the device in early 2023, positions the merged company to make a significant impact on stroke care.

Kandu's goal is to improve the quality of life for stroke survivors, citing that currently, 28% of people rate their quality of life as "poor or worse than death" one year after a stroke under existing treatment paradigms. By providing ongoing, evolving support and making IpsiHand available to eligible patients, the company aims to dramatically lower this figure and transform the landscape of stroke recovery.