NeuroMetrix (NSDQ:NURO) today saw shares fall despite announcing an exclusive deal giving GlaxoSmithKline (NYSE:GSK) ownership of its Quell technology for commercialization outside the US and releasing Street-beating first quarter earnings.
In its deal with GlaxoSmithKline, Waltham, Mass.-based NeuroMetrix said it will receive payments totaling $26.5 million, with $5 million paid at closing and up to $21.5 million payable upon achievement of milestones.
The companies also agreed to co-fund Quell development starting next year, NeuroMetrix reports. The company will also retain ownership of the Quell technology inside the US.
In its earnings release, NeuroMetrix reported profits of approximately $1.2 million on sales of $4.9 million for the three months ended March 31, seeing a swing from the red on profits while sales grew 14.8%. The company just topped the Wall Street sales consensus of $4.9 million.
“The GSK collaboration is transformative for us and for chronic pain sufferers who will have access to Quell technology outside the US. It pairs our unique product development capabilities with a global pharmaceutical company that has several top OTC pain relief brands. Further, it provides us with the capital resources necessary to bring to market our third generation Quell with improved usability and better margins. This next generation Quell, planned for launch in Q4 2018, will play a significant role along our pathway to sustained profitability,” prez & CEO Dr. Shai Gozani said in a press release.
Shares in NeuroMetrix have fallen 3.2% so far today, at $1.51 as of 10:20 a.m. EDT.
Last week, NeuroMetrix released results from a clinical study of its Quell wearable device, touting its ability to treat chronic pain.