IntElect Medical Inc. Closes $11 Million in Funding from Boston Scientific Corporation and Greatbatch, Inc. for Stroke and TBI Recovery Clinical Trials
Published: Nov 12, 2008
CLEVELAND, Nov. 12 /PRNewswire/ -- Intelect Medical, Inc., an early stage company developing an implantable neuromodulation system for stroke and traumatic brain injury recovery, announced it has closed a licensing and financing deal, led by existing investor Boston Scientific Corporation . Existing investor, Greatbatch, Inc. , also participated in the equity portion of the round that will provide between $11 million and $13.5 million plus the potential for future payments. The company plans to use the proceeds to continue its investigational work on traumatic brain injury (TBI) recovery therapy, in an expanded clinical feasibility study in Europe, and for a U.S. trial for its stroke recovery therapy, both using deep brain stimulation (DBS).
As part of the arrangement, Boston Scientific receives a co-exclusive license to Intelect's Dimension(R) Visual Programming Software for certain fields of use within DBS. The Dimension(R) software, currently under development, will provide clinicians with graphical information about changes in the stimulation field created around electrodes in the brain as electrical parameters are adjusted. Intelect's software is based on the work of Cameron McIntyre, Ph.D. and his colleagues at the Cleveland Clinic's Lerner Research Institute Department of Biomedical Engineering.
"We are pleased to broaden our partnership with Intelect Medical," said Michael Onuscheck, President of Boston Scientific Neuromodulation. "This relationship will improve our foot print into the DBS space and enable Intelect Medical to pursue their landmark research."
Vince Owens, President and Chief Executive Officer of Intelect Medical, said "This funding from Boston Scientific and Greatbatch will support our on-going R&D efforts related to our Enspire(TM) DBS Therapy system and additional clinical studies of our DBS therapies for stroke and TBI recovery in the U.S. and Europe."
"Greatbatch is committed to supporting the large and growing Neuromodulation device market," said Thomas J. Hook President and Chief Executive Officer of Greatbatch, Inc. "We are pleased to provide funding for Intelect to further develop its innovative DBS therapies and products."
Intelect Medical was incorporated in 2005, as a spin out of both the Cleveland Clinic and Cornell to develop new DBS therapies for recovery from stroke and TBI. Intelect's stroke recovery therapy is based on the work of Andre Machado, M.D. and his colleagues at Cleveland Clinic's Center for Neurological Restoration. The company's traumatic brain injury technology, based on the work of Nicholas Schiff, M.D., was licensed through the Cornell Center for Technology Enterprise and Commercialization (CCTEC), the technology transfer arm of the Weill Cornell Medical College. The Cleveland Clinic Foundation and Cornell Research Foundation, Inc. are shareholders in Intelect Medical.
About Stroke and Traumatic Brain Injury (TBI)
Both stroke and TBI are leading causes of serious, long-term disability worldwide. According to the National Institute for Neurological Disorders and Stroke, these two disabilities combined have an annual incidence of 2.2 million, while creating in excess of $115 billion in direct healthcare costs annually. Four million people in the United States are survivors of stroke and more than 5 million suffer from TBI disabilities.
About Intelect Medical
Intelect Medical, Inc., headquartered in Cleveland, OH, is an early stage medical device company focused on providing neuromodulation solutions to patients suffering with disabilities from stroke and traumatic brain injury. For more information, visit www.intelectmedical.com.
About Boston Scientific
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: http://www.bostonscientific.com/.
About Greatbatch, Inc.
Greatbatch, Inc. is a leading company that designs and manufactures high quality, innovative products and systems for customers in the cardiac rhythm management, neuromodulation, vascular and orthopedic markets. Additionally, Electrochem, a subsidiary of Greatbatch, is a world leader in the design and manufacture of technology solutions for some of the world's most demanding and extreme applications. Additional information about the Company is available at www.greatbatch.com.
About Cleveland Clinic
Cleveland Clinic, located in Cleveland, Ohio, is a not-for-profit multispecialty academic medical center that integrates clinical and hospital care with research and education. Cleveland Clinic was founded in 1921 by four renowned physicians with a vision of providing outstanding patient care based upon the principles of cooperation, compassion and innovation. U.S. News & World Report consistently names Cleveland Clinic as one of the nation's best hospitals in its annual "America's Best Hospitals" survey. Approximately 1,800 full-time salaried physicians and researchers at Cleveland Clinic and Cleveland Clinic Florida represent more than 100 medical specialties and subspecialties. In 2007, there were 3.5 million outpatient visits to Cleveland Clinic and 50,455 hospital admissions. Patients came for treatment from every state and from more than 80 countries. Cleveland Clinic's Web site address is http://www.clevelandclinic.org/.
Disclosure: The Cleveland Clinic Foundation is a shareholder in Intelect Medical. In addition, CCF employees have the right to receive stock from Intelect Medical, and serve as paid consultants to Intelect Medical. One CCF official serves on its Board of Directors.
About Weill Cornell Medical College
Weill Cornell Medical College -- located in New York City -- is committed to excellence in research, teaching, patient care and the advancement of the art and science of medicine. Weill Cornell, which is a principal academic affiliate of New York-Presbyterian Hospital, is the birthplace of many medical advances -- from the development of the Pap test for cervical cancer to the synthesis of penicillin, the first successful embryo-biopsy pregnancy and birth in the U.S., and most recently, the world's first clinical trial for gene therapy for Parkinson's disease. Weill Cornell's Physician Organization includes 650 clinical faculty, who provide the highest quality of care to their patients. For more information, visit www.med.cornell.edu.
CONTACT: Vince Owens of Intelect Medical, Inc., +1-216-346-6164
Web site: http://intelectmedical.com/