By Josh Beckerman
ElectroCore, a bioelectronic medicine and wellness company, agreed to buy NeuroMetrix, predicting the addition of the Quell platform will help its earnings and diversify its nerve stimulation product offerings.
The wearable Quell neuromodulator helps reduce fibromyalgia symptoms.
NeuroMetrix expects to divest its DPNCheck platform, which won't be included in the sale. The DPNCheck product is a rapid point-of-care test for peripheral neuropathies.
The exact deal price hasn't been determined.
ElectroCore will buy NeuroMetrix shares for the equivalent of NeuroMetrix's balance of net cash at the closing, after deduction of certain management compensation payments and other severance costs, transaction expenses and other accrued liabilities.
Consideration will also include contingent value rights for certain future net proceeds from any divestiture of DPNCheck that is completed prior to the closing, and certain royalties related to Quell sales.
NeuroMetrix shares rose 9.8% to $4.14 after hours Tuesday. Shares of electroCore rose 5.5% to $14.70.
NeuroMetrix said in February that it would review strategic options. At the time it said, "There are attractive opportunities for both vertical and horizontal growth" for Quell technology. It also said it was reviewing the DPNCheck business "in light of the fundamental Medicare Advantage risk adjustment changes implemented by CMS last year."
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
December 17, 2024 18:41 ET (23:41 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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