Kandu Health and Neurolutions Merge to Revolutionize Stroke Recovery, Securing $30M in Funding

In a significant development for stroke rehabilitation technology, Kandu Health and Neurolutions have announced their merger, creating a unified company that aims to transform stroke recovery through innovative brain-computer interface (BCI) technology and comprehensive telehealth services. The newly formed entity, operating under the Kandu name, has also secured $30 million in funding to support its ambitious commercial strategy.

Groundbreaking BCI Technology Meets Telehealth Services

The merger brings together Neurolutions' FDA-cleared IpsiHand system, a pioneering BCI device for stroke rehabilitation, with Kandu Health's established telehealth and post-discharge support platforms. This integration promises to deliver a seamless continuum of care for stroke patients, from the immediate post-acute phase through chronic rehabilitation and recovery.

Neurolutions' IpsiHand system, which received de novo authorization from the FDA in 2021, utilizes non-invasive electroencephalography (EEG) electrodes to capture brain signals. These signals are then interpreted to control a hand brace, enabling stroke patients to regain motor function in their affected hand. The system's efficacy was demonstrated in a 12-week clinical trial, where all 40 participants showed improvements in motor function.

Kandu Health, founded in 2022, has developed AI-supported digital health solutions that have shown promising results in reducing hospital readmission rates and improving functional outcomes for stroke patients recovering at home.

Financial Backing and Market Positioning

The merger is supported by a $30 million investment round, co-led by Ally Bridge Group and Amed Ventures. This significant financial backing will fuel Kandu's commercial strategy and accelerate the integration of IpsiHand into Kandu Health's existing stroke support services.

Kirsten Carroll, CEO of Kandu Health and future general manager of the merged company, highlighted the unique market position of their offerings: "IpsiHand is the first BCI technology cleared by the FDA for stroke rehabilitation and the first to receive a Centers for Medicare and Medicaid Services (CMS) reimbursement code."

Addressing Unmet Needs in Stroke Recovery

The newly formed Kandu aims to address a critical gap in stroke recovery outcomes. According to company data, 28% of stroke survivors rate their quality of life as "poor or worse than death" one year after a stroke when treated under current paradigms. By combining advanced BCI technology with comprehensive telehealth services, Kandu seeks to significantly improve these outcomes.

Leo Petrossian, former CEO of Neurolutions and now CEO of the merged Kandu, expressed optimism about the merger's potential: "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."

As Kandu moves forward with its integrated approach to stroke rehabilitation, the medical technology industry will be watching closely to see if this merger can deliver on its promise to transform the landscape of stroke recovery and improve the lives of millions affected by this debilitating condition.