US-based wearable neuromodulation device manufacturer Cala Health completed a $50m series C round backed by internet and technology group Alphabet and pharmaceutical firms Novartis and Johnson & Johnson yesterday.
DRX Capital, a joint investment vehicle formed by Novartis and mobile chipset manufacturer Qualcomm, also took part in the round, as did LifeSci Venture Partners, part of investment firm and consultancy LifeSci Partners.
Baird Capital, TriVentures, Lux Capital, Lightstone Ventures and Action Potential Venture Capital filled out the round along with unnamed additional investors. Alphabet and Johnson & Johnson invested through respective subsidiaries GV and Johnson & Johnson Innovation – JJDC.
Founded in 2014 on the back of research from Stanford University, Cala develops wearable devices that modulate nervous system activity by stimulating individual peripheral nerves. Its first product, Cala Trio, will treat patients living with severe hand tremors.
Cala plans to introduce Cala Trio for limited release, with a commercial strategy based on distributing the system directly to patients with a prescription. The series C proceeds will support Trio’s market launch as well as the development of other products in the company’s pipeline.
Stacy Enxing Seng, a venture partner at Lightstone Ventures, is set to join Cala’s board of directors in connection with the transaction. Cala had already secured $18m in a 2016 round backed by unnamed investors, according to a regulatory filing.
GV, JJDC, Lux Capital, Lightstone Ventures, Action Potential Venture Capital and DRX Capital were all described by Cala as existing investors in 2016, though it has not officially disclosed details of funding raised before then.