NeuroOne (Nasdaq:NMTC) announced today that it executed an amendment to its existing distribution agreement with Zimmer Biomet (NYSE:ZBH).
The amendment provides Zimmer Biomet with exclusive rights to distribute NeuroOne’s OneRF ablation system for use in the brain. It provides NeuroOne with an upfront payment of $3 million and the potential to earn another milestone payment based on certain performance criteria. The company expects meaningful revenue and improved profitability from the agreement.
“The expanded agreement with Zimmer Biomet to include distribution of our OneRF ablation system is a significant catalyst for the company,” says Dave Rosa, president and CEO of NeuroOne. “We are confident that the partnership will allow NeuroOne to leverage Zimmer Biomet’s leadership position in robotic technology and extensive distribution channel both in the United States and abroad.
“As the world’s first FDA-cleared system for both diagnostic and therapeutic procedures, our ablation system provides clear advantages over existing competitive electrode technologies. We look forward to continuing to expand the indications for use in the future.”
More about OneRF
The OneRF system picked up FDA 510(k) clearance in December 2023 for the creation of radiofrequency (RF) lesions in nervous tissue for functional neurosurgical procedures. This technology uses already-implanted sEEG electrodes to record brain activity and enable the ablation of nervous tissue.
Eden Prairie, Minnesota-based NeuroOne designed OneRF to connect to a proprietary radiofrequency (RF) generator. The electrodes provide a similar function at the subsurface level of the brain compared to cortical electrodes.
In August, NeuroOne said it signed a distribution deal with an undisclosed global medical technology company for OneRF. At the time, it appeared to mirror the existing Zimmer Biomet deal for the Evo sEEG electrodes.
Brian Hatcher, President, SET and CMFT at Zimmer Biomet said: “We are excited to expand the relationship with NeuroOne to include the OneRF ablation system, which builds on our existing agreement to distribute NeuroOne’s Cortical and sEEG diagnostic electrode technology, and we look forward to launching this product in the near future.”
