DW Healthcare Acquires CEFALY Technology to Advance Non-Invasive Neuromodulation for Migraine Treatment

Recently, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that DW Healthcare Partners (DW Healthcare), a healthcare-focused investment firm, has announced the acquisition of CEFALY Technology (CEFALY). Specific financial terms were not disclosed. Global advisory firm Stout provided advisory services for this transaction.

Headquartered in the Liège region of Belgium, CEFALY is a medical company engaged in the research and development of various therapeutic approaches in the fields of biotechnology, pharmaceuticals, and medical devices. The company is dedicated to developing neuromodulation medical devices for the treatment of migraine and other headache disorders. CEFALY’s devices are non-invasive and automatically generate electrical pulses to stimulate the trigeminal nerve.

Migraine affects 15% of Europeans, ranks among the top 12 most disabling and inadequately treated diseases listed by the World Health Organization, and imposes the highest socioeconomic burden among brain disorders in Europe. Current pharmacological treatments for migraine offer only modest efficacy and are poorly tolerated, primarily due to a lack of understanding of the mechanisms triggering pain and the reasons behind the sharp increase in pain frequency.

Overuse of analgesics and triptans is a risk factor for the progression of migraine to chronic migraine, and may also contribute to depression, stress, and obesity. Central sensitization of pain signaling pathways is likely key to the chronification process. To address this, Cefaly has conducted extensive research and development, ultimately succeeding in creating novel therapeutic options and solutions for patients suffering from migraine or other types of primary headache.

CEFALY possesses two proprietary technologies for triggering extracranial nerve electrical action potentials (extracranial nerve stimulation), including e-TNS (external trigeminal nerve stimulation) and e-ONS (external occipital nerve stimulation). The company’s tDCS (transcranial direct current stimulation) technology can modulate cortical neurons to increase or decrease spontaneous activity in specific regions of the brain.

Furthermore, CEFALY possesses extensive expertise in the acquisition and analysis of biosignals. It has developed an integrated biofeedback system capable of precisely recording action potentials from facial muscles and detecting simple blink movements. CEFALY’s innovative technology is also poised to advance the treatment of other neurological conditions, including insomnia, depression, epilepsy, tinnitus, and Alzheimer’s disease.

The Cefaly professional team, composed of engineers and physicians, has collaborated with several universities on international research projects, including serving as the sole corporate partner for 11 European research centers and universities in the EUROHEADPAIN clinical study on chronic migraine.

DW Healthcare is a private equity firm headquartered in Toronto, Ontario, Canada. Established in 2002, the company focuses on investments in the healthcare industry. Its investment team maintains strong relationships with thousands of enterprises across the North American healthcare sector, providing hundreds of investment opportunities to its healthcare partners each year.

DW Healthcare manages four funds with over $800 million in assets under management. The firm’s investors include large corporations offering pension plans, insurance companies, foundations, asset management firms, high-net-worth family trusts, and endowments. DW Healthcare’s comprehensive understanding of the healthcare market enables it to rapidly evaluate investment targets and execute transactions. Leveraging its specialized expertise in healthcare investing, the firm gains deep insight into the operational and strategic challenges faced by business owners, providing them with valuable strategic resources to drive profit growth and corporate development.

“Pierre Rigoux, Co-Founder and CEO of Cefaly, stated in a press release, ‘We are delighted to partner with DWHP. The company has entered a new phase of rapid growth and will continue to focus on developing novel migraine treatments and bringing them to the global market.’”

“CEFALY is at the forefront of non-invasive neuromodulation therapy for migraine, achieving significant results in reducing and eliminating migraines. We anticipate that a growing number of patients worldwide will use CEFALY devices for neuromodulation therapy,” said John Calcagnini, Managing Director and Head of Healthcare and Life Sciences Practice at Stout.

Stout, founded in 1991, is a global consulting firm specializing in investment banking, valuation advisory, dispute advisory, and management consulting. The company operates 22 offices worldwide, including locations in Chicago, Cleveland, and Detroit in the United States, and employs more than 125 professionals.

Stout primarily focuses on the aerospace and defense, transportation, automation, commercial services, consumer products, retail, food and beverage, diversified industries, energy and utilities, financial services, healthcare, metals and mining, plastics packaging, real estate, media, and telecommunications sectors.

(Compiled by Tang Lulu)