California-based medical device maker Cervel Neurotech is nearing the close of an $11.9 million funding round, having raised $11.1 million since April 2013 in support of its technology-based therapies for neurological and psychiatric disorders.
The company filed an amendment this month citing 8 unnamed investors participating in its financing round, which involved sales of equity, rights and securities. The fundraising, which is not associated with any other transaction, so far includes "a warrant, the exercise price of which has not been received, and may never be received," Cervel reported.
Cervel is developing Repetitive Transcranial Magnetic Stimulation (rTMS or TMS) in treatment of mental illnesses usually managed through drugs and counseling. The company’s TMS system aims to "reset" electrical activity in certain areas of the brain associated with various disorders, using magnetic fields generated by non-invasive coils.
TMS is FDA-cleared for treating depression and studies are underway to evaluate the technology for treatment of a variety of other neurologic disorders, including post-traumatic stress disorder, addiction, bipolar disorder and Alzheimer’s disease, according to Cervel’s website.
Cervel’s technology in particular aims to stimulate multiple areas of the brain together and to penetrate into deeper structures that are often difficult to reach with traditional TMS therapy. Cervel’s device involves multiple magnetic coils placed directly on the scalp, to "steer" the magnetic field to targeted regions of the brain.
"Stimulation of these areas may return optimal metabolism and provide relief from symptoms so that a feeling of wellness and balance can be restored," according to the company.
Cervel’s devices are not yet cleared for use in the U.S., outside of approval for use in clinical research.