Under the terms of the settlement agreement, RGN paid $150,000 to Endonovo Therapeutics and granted an exclusive option to Endonovo to acquire the PEMF assets of RGN for $4.5 million.
Endonovo to Fund All Currently Planned and Future Clinical Trials for Traumatic Brain Injury, Post-Concussion Syndrome, Stroke and Other Central Nervous System Disorders
LOS ANGELES, CA, Dec. 26, 2017 (GLOBE NEWSWIRE) -- Endonovo Therapeutics (OTCQB: ENDV) (“Endonovo” or the “Company”), a clinical-stage developer of non-invasive electroceuticals for the treatment of vascular diseases and inflammatory conditions, today announced it has acquired the PEMF assets of Rio Grande Neurosciences, Inc. (“RGN”) for $4.5 million and settled its lawsuit concerning RGN’s termination of the binding letter agreement to acquire RGN dated July 8, 2016.
Under the terms of the settlement agreement, RGN paid $150,000 to Endonovo Therapeutics and granted an exclusive option to Endonovo to acquire the PEMF assets of RGN for $4.5 million, which the Company exercised per the settlement agreement. The settlement has resulted in the dismissal of the case in the Superior Court of California, County of Los Angeles.
Endonovo believes settling the case at this time is in the best interest of all parties, and its acquisition of RGN’s PEMF assets could result in substantial benefit to its shareholders.
The PEMF assets includes a portfolio of intellectual property, including 27 issued patents with foreign patent protection covering the therapeutic use of PEMF for the treatment of various central nervous system disorders. Endonovo Therapeutics will initiate and fund both currently planned and all future clinical trials to evaluate the use of PEMF in the treatment of central nervous system disorders, including traumatic brain injury, post-concussion syndrome, stroke and multiple sclerosis.
The PEMF assets additionally include a portable, disposable PEMF device with a CE Mark and an FDA 510(k) clearance for the treatment of soft tissue injuries and post-surgical pain and edema in addition to medical reimbursement for the treatment of chronic wounds. Endonovo Therapeutics will begin the commercialization of the PEMF assets through licensing and joint venture agreements and the creation of various sales channels and distribution agreements.
The Company has posted an overview of the PEMF assets in the presentations page on its investor relations website.
About Traumatic Brain Injury:
Traumatic Brain Injury (TBI), also called craniocerebral trauma is a brain dysfunction caused by an outside force, usually a violent blow to the head. In 2010, approximately 2.5 million people sustained a traumatic brain injury. More than half of all brain injuries are bad enough to require people to go to the hospital. A severe TBI not only affects the quality of life of an individual and their family, but also imposes a large economic toll on society. The economic cost of TBI in 2010 was estimated to be approximately $76.5 billion. Severe brain injuries can lead to permanent brain damage or death. Half of all TBIs are from motor vehicle accidents, with military personnel in combat zones and athletes also being at risk.
About Chronic Wounds:
A chronic wound is a wound that does not heal in an orderly set of stages and in a predictable amount of time the way most wounds do. Wounds that do not heal within three months are often considered chronic. Some of the most common types of chronic wounds include, ischemic wounds, radiation poisoning wounds, surgical wounds and ulcers, such as arterial ulcers, venous ulcers, diabetic ulcers and pressure ulcers. The increasing prevalence of diabetes mellitus is a driving factor in the occurrence of chronic wounds, such as diabetic ulcers. A recent study published in Value in Health, found that approximately 15% of Medicare beneficiaries in 2014 (8.2 million) had at least one type of wound or infection at an estimated cost of nearly $32 billion to CMS. As the US Centers for Medicare and Medicaid Services (CMS) moves toward an outcome-based model, CMS needs to take a careful look at wound care, according to the authors of the study. New, more effective and equally important, more cost effective therapies are needed as the cost associated with treating these chronic wounds continues to rise.
“We are very excited about this acquisition and the value it will provide our shareholders,” said Endonovo CEO, Alan Collier. “We are adding clinical stage programs and expanding our pipeline of non-invasive electroceuticals into central nervous system disorders, strengthening our intellectual property, and adding market-ready products for the treatment of various soft tissue injuries, post-surgical pain and swelling, as well as chronic wounds,” stated Mr. Collier.
“This acquisition represents a significant milestone for Endonovo and positions the company as the leader in bioelectronic medicine allowing for more favorable financing, uplisting the company’s common stock onto a national stock exchange and providing the company a valuation comparable to other companies in the electrical stimulation/electroceuticals sector,” concluded Mr. Collier.
About Endonovo Therapeutics
Endonovo Therapeutics, Inc. is a clinical-stage developer of non-invasive electroceuticals for the treatment of vascular diseases, including cardiovascular and cerebral vascular disease and inflammatory conditions. The Company’s non-invasive electroceuticals use targeted-Pulsed Electromagnetic Fields (tPEMF) to induce micro-currents in tissues to target proinflammatory, fibrogenic and regenerative signaling pathways for the treatment of cardiovascular and cerebrovascular diseases, as well as for the treatment of chronic kidney and liver disease. Endonovo Therapeutics’ is developing a pipeline of electroceutical-based therapies for the treatment of cardiovascular disease, cerebrovascular disease, peripheral artery disease, chronic kidney disease, non-alcoholic steatohepatitis (NASH) and chronic wounds. The Company’s tPEMF technology using short wave radiofrequency at 27.12 MHz has been FDA-cleared and has a CE Mark for the treatment of soft tissue injuries and post-operative pain and edema, as well as CMS National Coverage for the treatment of chronic wounds. Endonovo is developing a clinical pipeline using tPEMF for the treatment of central nervous system (CNS) disorders, including post-concussion syndrome, mild traumatic brain injury (mTBI), and multiple sclerosis.
Safe Harbor Statement
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, trends, analysis, and other information contained in this press release including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” and other similar expressions of opinion, constitute forward-looking statements. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.
Investor Relations Contact: Endonovo Therapeutics, Inc. Mr. Steven Barnes Senior Vice President of Investor Relations (800) 701-1223, Ext. 108 Sbarnes@endonovo.com www.endonovo.com Investors: Sign Up for Email Alerts on Endonovo
