Pain management: Neuromodulation company Nevro closes $58 million round

July 19, 2011 by MassDevice staff

Nevro Corp. closes $58 million financing round to fund U.S. pivotal trial of spinal cord stimulation system for pain management.

Nevro Corp., an early stage company that makes a spinal cord stimulator for chronic pain, has raised $58 million to continue development of its flagship product and prepare for a possible U.S. launch.

The Menlo Park, Calif.-based company said the funding round was led by Johnson & Johnson Development Corp. (NYSE: JNJ), along with existing investors Aberdare Ventures, Accuitive Medical Ventures, Bay City Capital, Mayo Clinic, MPM Capital and Three Arch Partners.

Nevro is led by former Medtronic Inc. (NYSE:MDT) COO Michael Demane, who joined the company back in March. Jon Tremmel, former president of MDT's neurological division, also sits on the board of Nevro.

Prior to joining Nevro, Demane briefly held the top spot at Lanx Inc., a privately held Bloomfield, Colo.-based spinal surgery device maker. Demane accepted the CEO position and then resigned 10 days later. He was once considered a top candidate to lead Medtronic in 2007, before the job went to William Hawkins.

Now, he will get a chance to compete directly with the Fridley, Minn.-based medical device colossus, which boasts one of the largest portfolios of neurostimulation devices, including pain management systems.

The Nevro device, which received the CE mark in 2010, is available commercially in Europe for chronic leg and back pain. The company closed a $20 million funding round in April of this year, according to regulatory filings.

Nevro was founded in 2007 by Konstantinos Alataris, who led the development of the core therapy at the Mayo Clinic.