Privately held Cervel Neurotech raised $14.1 million in support of its technology-based therapy for depression, pain and other conditions, according to a company announcement.
Cervel is working on drug-free, non-invasive technology that delivers magnetic fields through ares of the brain associated with neurological symptoms of a given disorder. Called Transcranial magnetic stimulation, the technology is believed to work by restoring metabolism in areas of the brain using electrical currents delivered by coils placed on a patient’s scalp.
"Specifically, this financing enables us to continue to demonstrate the highly differentiated nature of our platform for the treatment of psychiatric and neurologic conditions," Cervel CEO Eric Meier said in prepared remarks. "Our clinical pilot studies in depression and pain have yielded promising safety and effectiveness data, and this funding will allow us to undertake the larger scale clinical activities required to further validate our novel approach to delivering transcranial magnetic therapy."
The Foster City, Calif.-based medical device maker raised funds from existing investors D. E. Shaw Ventures and Aberdare Ventures, as well as from 2 new unnamed investors and a credit facility with East West Bank.
Earlier this month the company also filed documents with the SEC reporting that it had raised $10.3 million of a hoped-for $11.9 million fundraising round among 6 unnamed investors. The fundraising so far includes "a warrant, the exercise price of which has not been received, and may never be received," according to the regulatory filing.