(By Balachander) Cyberonics Inc. (NASDAQ:CYBX) said it may invest up to 5.5 million euros ($7.1 million) in Germany-based cerbomed, a maker of medical devices for the treatment of neurological and psychiatric diseases.
Houston, Texas-based Cyberonics, which makes neuromodulation therapy systems, will make an initial investment of 2 million euros in cerbomed. The investment in cerbomed can total up to 5.5 million euros, based on certain milestones, the company said.
Cerbomed, founded in 2005, has developed a neurostimulation device, NEMOS, for the treatment of drug-resistant epilepsy. Its investors include: Germany's venture capital fund MIG AG, KfW Banking Group and S-Refit AG.
The NEMOS t-Vagus Nerve Stimulation(VNS) device received CE Mark approval for the treatment of epilepsy and depression in 2010 and for pain in 2012 and is available in Germany and Austria.
The initial investment will be used to fund cerbomed's current clinical trial in epilepsy in Germany.
Cyberonics has the option to conduct a trial in the United States to seek FDA approval, subject to certain conditions.
Cyberonics develops the VNS Therapy System, which is FDA-approved for the treatment of medically refractory epilepsy and treatment-resistant depression.
The VNS Therapy System delivers pulsed electrical signals to the vagus nerve and is implanted during an outpatient procedure.
The stock, which has been trading in the 52-week range of $24.64 to $52.75, rose 0.32 percent to trade at $52.63 on Thursday.