Shares of NeuroMetrix Inc (NASDAQ:NURO) soared today after receiving its first milestone payment of US$3.8mln under its strategic collaboration for its Quell technology with GlaxoSmithKline plc(LON:GSK).
Investors sent the healthcare group’s shares up by 24.5% in afternoon trade to US$1.55 in response to the payment’s arrival.
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. It is made up of circuit packs that are fitted into fabric bandages and stimulate legs and arms via an adhesive set of electrodes.
Read: NeuroMetrix booms as it enters into strategic collaboration with healthcare giant GSK
Under the pact with Glaxo's consumer health care division, NeuroMetrix ceded exclusive ownership of its Quell technology for markets outside the US in exchange for a US$5mln upfront payment and up to US$21.5mln upon the achievement of certain milestones.
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.