NeuroMetrix Inc (NASDAQ:NURO) soared yesterday in New York after the health technology group entered into a strategic collaboration with UK healthcare giant GlaxoSmithKline plc (LON:GSK) to develop and expand access the Quell wearable pain relief technology.
Quell is NeuroMetrix’s FDA-cleared, over-the-counter wearable device that taps into the body’s natural pain response system to provide widespread pain relief.
As part of the deal, GSK’s consumer healthcare division will pay US$5mln upfront to acquire the exclusive ownership of the Quell technology for markets outside of the US, plus up to a further US£21.5mln in possible milestone payments.
That’s a lot of money for NeuroMetrix, which started the day with a market value of less than US$6mln.
The two companies will also work together over the coming three years to further develop the technology, with the potential for both parties to extend the partnership.
“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,” said NeuroMetrix chief executive Shai Gozani.
“GSK Consumer Healthcare is a world leader in over-the-counter pain relief, with several top global brands.”
Shares jumped almost 50% to US$2.44 early on Wednesday. Today (Thursday) shares eased back a tad - 1.93% to US$2.03.