Cyberonics Agrees to Invest in Cerbomed

Houston, Texas-based Cyberonics Inc. is making an initial investment of 2 million euros in Cerbomed GmbH, a privately held company in Erlangen, Germany, that is developing a non-invasive neurostimulation device for the treatment of epilepsy. Its Nemos t-VNS device received CE Mark approval for the treatment of epilepsy and depression in 2010 and for pain in 2012; it now is commercially available in both Germany and Austria.

Cyberonics also develops devices for the treatment and management of epilepsy. The company’s core expertise is in neuromodulation. The company developed and markets the VNS Therapy System, which is U.S. Food and Drug Administration (FDA)-approved for the treatment of medically refractory epilepsy and treatment-resistant depression. The VNS Therapy System is a medical device that delivers pulsed electrical signals to the vagus nerve and is implanted during an outpatient procedure.

The investment in Cerbomed may total up to 5.5 million euros and is subject to the achievement of certain clinical milestones. Cyberonics is a minority shareholder with certain rights, including representation on Cerbomed’s advisory board and an exclusive option for worldwide sales and distribution of the Nemos system for the treatment of epilepsy. The initial investment will be used to fund Cerbomed’s current clinical trial in epilepsy in Germany. Cyberonics has the option to conduct a trial in the United States to gain FDA approval, if desired.

“As a company focused on device solutions for epilepsy, an investment in Cerbomed’s technology is aligned with our strategic priorities and core expertise,” said Dan Moore, Cyberonics’ president and CEO. “We are excited about the opportunity to invest in a technology that may provide more patients with epilepsy another device-based therapeutic option and opportunity for improved quality of life.”

“We are delighted to welcome Cyberonics as our strategic global partner for the epilepsy indication,” added Cerbomed CEO Andreas Hartlep. “We look forward to our collaboration and continuing to understand how transcutaneous and implantable vagus nerve stimulation may be complementary technologies and provide benefit to patients.”