Shares in NeuroMetrix (NSDQ:NURO) soared this morning after the company announced it would partner with GlaxoSmithKline (NYSE:GSK) to expand development of NeuroMetrix’s Quell wearable pain-relief device.
According to the terms of the deal, GSK’s consumer healthcare business will have exclusive rights to the Quell system for markets outside of the U.S., while NeuroMetrix will retain ownership of the device within the U.S.
GSK and NeuroMetrix plan to co-fund further development of Quell for three years, beginning this year. GSK is slated to pay $5 million upfront and up to $21.5 million down the road, contingent upon certain development and commercialization milestones.
“We are excited by the opportunity to partner with GSK consumer healthcare to expand access to Quell technology among chronic pain sufferers around the world. GSK consumer healthcare is a world leader in over-the-counter pain relief, with several top global brands,” Dr. Shai Gozani, president & CEO of NeuroMetrix, said in prepared remarks.
“We will continue to focus on building Quell into a leading U.S. consumer healthcare brand while collaborating with GSK on Quell product development and supporting their international commercialization efforts. We believe that GSK is our ideal Quell partner as we share a deep commitment to science-based therapies and to the health and quality of life of our customers.”
Quell, which is approved by the FDA and has CE Mark clearance in the E.U., is designed to treat chronic pain. The system can be worn during the day and while the user is sleeping at night. Users can manage their treatment using the Quell app and track things like pain, sleep, activity and gait.
NURO shares were trading at $2.42 apiece in early-morning activity today, up +40%.