Irish medtech Neuromod has developed a breakthrough device to treat millions of tinnitus sufferers in US and Europe.
Dublin-based Neuromod Devices has closed a €30m financing round to further commercialise its tinnitus treatment device called Lenire.
Tinnitus, commonly referred to as ‘ringing in the ears’, is the perception of sound without an external source and affects 10% to 15% of the global adult population. Lenire has shown in large scale clinical trials to reduce tinnitus severity.
“Europe has a long history in leading the world in hearing innovation. We are proud to add to that tradition by bringing our landmark tinnitus treatment Lenire to the millions of sufferers in Europe and the US”
The device has recently been granted De Novo approval from the US Food and Drug Administration (FDA) and is available throughout Europe.
Coming to America
As part of the overall financing, a €15m expansion of the Series B was led by Panakès Partners with participation from existing investor Fountain Healthcare Partners. An additional €15m in venture debt was provided by the European Investment Bank.
Proceeds from the financing will be used to launch Lenire in the US and pursue opportunities in the US Departments of Defense and Veteran Affairs following the device’s recent FDA De Novo approval. The first US patients will start treatment for their tinnitus in April 2023.
Neuromod will also expand the availability of Lenire to additional European countries, including Italy, the Netherlands, Portugal, and Sweden, and further next generation product development.
Since Neuromod’s previous round of funding in October 2020, the organisation has made significant progress commercialising Lenire, expanding the device’s availability throughout Europe, establishing a wholly owned US subsidiary, Neuromod USA Inc, and securing US market approval from the FDA.
“We are delighted to announce the successful completion of our Series B2 financing and to welcome new investors Panakès and the European Investment Bank,” Neuromod CEO and founder Dr Ross O’Neill said.
“Europe has a long history in leading the world in hearing innovation. We are proud to add to that tradition by bringing our landmark tinnitus treatment Lenire to the millions of sufferers in Europe and the USA. This investment will help us to expand availability of Lenire in Europe, launch the product in the US and pursue opportunities in the USVA and DoD following our recent De Novo grant from the FDA.”
“There are more people in the world with tinnitus than with hearing loss. Tinnitus is one of the largest unmet clinical needs globally and is the number one cause of service-connected disability among US veterans and military personnel. Despite this, there has been practically no innovation in the tinnitus area. This financial support will ensure that, once again, Europe leads the way as Neuromod addresses this huge unmet need in the hearing area.”
The management of tinnitus continues to pose a significant burden on healthcare systems. A recent study estimated the socioeconomic costs of tinnitus in Germany at €21.9bn per annum. In the US, tinnitus was the most prevalent service-connected disability compensated for by the US Veterans Benefits Administration with more than 2.7 million veterans compensated in 2022. It’s also estimated the Veterans Benefits Administration paid out more than $4.9bn through its Veterans Compensation benefits program for tinnitus alone in 2022.
“Tinnitus impacts the lives of millions of people and investment to develop new treatments is essential,” said Thomas Östros, Vice President of the European Investment Bank.
“The European Investment Bank supports cutting edge world class medtech companies and is pleased to provide €15 million venture debt financing to enable Neuromod to commercialise and expand access to tinnitus treatment technology.”