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KT Senior EVP and Head of AI/DX Jae-ho Song and NeuroSigma Director, C. Thomas Paschall execute investment documents at KT’s headquarters in Seoul, South Korea
Transaction follows the June 2021 announcement of a strategic digital health partnership between NeuroSigma and KT
Significant investment in NeuroSigma’s digital health and neuro-electronics platform
LOS ANGELES, Dec. 08, 2021 (GLOBE NEWSWIRE) -- NeuroSigma, Inc., a bioelectronic medical device company, announced today that KT Corporation has made a $5 million equity investment in NeuroSigma. NeuroSigma is the developer of the Monarch eTNS System®, which uses non-invasive external trigeminal nerve stimulation (eTNS) to treat neurological and neuropsychiatric indications, including ADHD, depression, and epilepsy. The therapy is the first device-based, non-drug therapy approved by the FDA to treat pediatric ADHD. Investment proceeds will be used to fund the pilot commercialization of the Monarch eTNS System in the U.S., development of the next generation of the eTNS device, additional clinical studies, and application for expanded regulatory approvals in the U.S. and other territories.
KT, an international digital telecommunications company based in Seoul, South Korea, has selected the digital healthcare sector as one of its next leading businesses. In partnership with major hospitals, pharmaceutical companies, academic associations, and biotech ventures, KT has successfully constructed a digital healthcare ecosystem and will continue to expand with global collaborations.
The equity investment follows the announcement in June 2021 of a digital health partnership between NeuroSigma and KT. Through this existing partnership, the two companies will endeavor together to develop the next generations of eTNS products incorporating artificial intelligence (AI), big data, and cloud capabilities; advanced monitoring and AI analysis services, provided through KT's digital healthcare platform; and pursue commercialization and manufacturing partnerships in Korea.
“We are excited and proud to expand NeuroSigma’s investor base and deepen our strategic relationship with KT,” said NeuroSigma's Vice President, Dr. Colin Kealey. “These investment proceeds will allow us to advance the commercialization and further development of the Monarch eTNS System, which is at the leading edge of the convergence of medicine and electrical engineering. We look forward to our ongoing relationship with KT, with whom we expect to make important innovations in wearable bioelectronics and digital healthcare.”
“Through this investment, we will seek mutual growth of the two companies and support the Monarch eTNS System’s commercialization, development of additional digital therapeutic indications, and acceleration of NeuroSigma’s business growth trajectory,” said Jae-ho Song, KT’s Senior Executive Vice President and Head of the AI/DX Convergence Business Group. “KT will fully support NeuroSigma with our competitive technologies in the fields of AI, Big Data, and Cloud to globally expand the capabilities of both KT’s digital health business and NeuroSigma’s neuro-electronic solutions.”
Concurrently with the closing of KT’s investment, NeuroSigma completed substantial debt-to-equity conversions, involving significant institutional holders and giving the company a strong balance sheet for future growth.
Checkmate Capital Group served as strategic and commercial advisor to NeuroSigma in connection with this transaction. Haynes and Boone, LLP served as legal counsel to NeuroSigma.
NeuroSigma is a Los Angeles, California-based life sciences company established to develop bioelectronic technologies with the potential to transform medical practice and patients' lives. It has developed the Monarch eTNS System, which is the first non-drug treatment for pediatric ADHD cleared by the FDA. NeuroSigma is focused on trigeminal nerve stimulation (TNS) bioelectronics therapies based on intellectual property, licensed on an exclusive basis from the University of California, Los Angeles (UCLA), being developed to treat a wide spectrum of neurological and neuropsychiatric disorders, including ADHD, drug-resistant epilepsy, post-traumatic stress disorder, and depression. TNS therapy operates through mild electrical stimulation of branches of the trigeminal nerve, including branches located near the surface of the forehead. Functional neuroimaging data suggests the mechanism of action of TNS is related to its ability to modulate activity in targeted brain regions. For more information about NeuroSigma, please visit www.neurosigma.com. For more information on eTNS, please visit www.monarch-etns.com.
About KT Corporation (KRX:030200; NYSE:KT)
KT Corporation, an international digital telecommunications company, reestablished in 1981 under the Telecommunications Business Act, is leading the era of innovation in the world's most connected country. The company is leading the 4th industrial revolution with high-speed wire/wireless networks and new ICT technology. KT has selected Digital Health, AI, BigData, Cloud, Robot, etc as its next leading businesses. This is another milestone in KT's continuous efforts to deliver essential products and services as it aspires to be DIGICO KT. For more information about KT Corporation, please visit www.kt.com.
CONTACT: Colin Kealey, M.D., Vice President at CKealey@neurosigma.com.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ad7b436f-f3e0-414f-88dc-f95df23fecd5