NeuroPace, a US-based epilepsy treatment device developer backed by pharmaceutical firm Johnson & Johnson, collected $67m on Monday in a funding round led by private equity fund Accelmed Partners.
The round featured an undisclosed strategic investor as well as Revelation Partners, Soleus Capital, KCK Group and Orbimed Advisors. It consisted of $33m in new equity financing and $34m of debt from an earlier round converted into equity.
The company could potentially receive up to $27m in additional funding that is available for a second tranche, but conditions for the extension have not been revealed.
Founded in 1997, NeuroPace has created an implantable medical device called RNS System to treat refractory focal epilepsy: a form of the disease that causes frequent and severe seizures.
RNS System continuously monitors brain waves and provides neurostimulation if abnormal patterns are detected that indicate the patient is at risk of suffering from a seizure. It has been approved by the US Food and Drug Administration and is widely covered by insurance providers.
The funding will enable NeuroPace to accelerate business growth and explore additional indications for the RNS System. It will also support the launch of a clinical trial for patients under 18 years old.
The company had previously raised $254m in funding according to securities filings and press reports, KCK Group and Orbimed Advisors having co-led a $74m funding round in 2017.
NeuroPace secured $18m in funding in 2013 according to a regulatory filing. The round was led by Johnson & Johnson’s investment arm, Johnson & Johnson Innovation – JJDC according to Bioworld, which also identified MedVenture Associates, Kleiner Perkins Caufield & Byers, Interwest Partners and New Enterprise Associates as backers.
Brad Vale, then head of venture investments at Johnson & Johnson Innovation – JJDC, was named as a NeuroPace board member in a 2011 filing for a $49m round, but it is unclear when JJDC first invested in the company. Its shareholders also include Domain Associates, DAG Ventures and Glynn Capital Management.
