The goal of the joint venture, which the companies will be finalizing over the next several months, is to utilize the Andara oscillating field stimulator (OFS) technology to develop a product or series of products for peripheral nerve injuries.
Under the terms of the joint venture, both companies each own 50%. Cyberkinetics contributes intellectual property, know-how and scientific expertise to the joint venture. NeuroMetrix funds up to $2 million in spending for the first two years of the joint venture; the two companies share further development costs equally and NeuroMetrix obtains an option to negotiate for exclusive rights to commercialize any products which are developed within the joint venture.
Shai Gozani, NeuroMetrix’s president and CEO said: “We are very excited about this strategic alliance with Cyberkinetics. The quality of the Cyberkinetics’ science, product development capabilities, people and the potential for the Andara OFS technology make this a very attractive investment and product development opportunity for our company.”