Cala Health Secures $50 Million Series C Financing Led by GV, Novartis, and Johnson & Johnson Innovation to Advance Wearable Neuromodulation Therapy for Essential Tremor

VCBeat (WeChat Official Account: vcbeat) has learned that on May 21, Cala Health, a medical device company focused on developing wearable devices, announced the completion of its $50 million Series C financing round. The round was led by new investors Novartis, Baird Capital, LifeSci Venture Partners, and TriVentures, together with existing investors Johnson & Johnson Innovation, Lux Capital, Lightstone Ventures, Action Potential Venture Capital, dRx Capital, and GV. As part of this financing, industry veteran Stacy Enxing Seng will join Cala Health as an Independent Director and Chair of the Board.

Cala Health is a biotechnology company dedicated to transforming the standard of care for chronic diseases. The company has pioneered a novel form of electroceuticals known as Peripheral Neurostimulation Therapy, which holds the potential to treat chronic conditions through transcutaneous electronic stimulation of peripheral nerves. This financing will be used to develop and commercialize Cala Trio™, a wearable device under the Cala Health portfolio.

Essential tremor (ET) affects more than 7 million Americans and is one of the most common movement disorders. The primary symptom of this condition is hand tremors, with an incidence rate eight times that of Parkinson’s disease. Current medications used to treat ET are not only modestly effective but also cause severe side effects. Invasive deep brain stimulation can effectively alleviate symptoms, but it is costly and not widely accessible.

Cala Trio™ is a personalized, prescription neuromodulation therapy designed to alleviate hand tremors caused by essential tremor (ET). Resembling a smartwatch, the device delivers electrical stimulation to the nerves through the skin of the wrist. Notably, it received FDA approval on April 26, 2018, becoming the first approved non-invasive therapy targeting nerve stimulation for the treatment of ET.

Cala Trio™ Device (Image from the official website)

Nicole Walker, General Partner at Baird, stated, “We are delighted to partner with Cala Health. The non-surgical neuromodulation therapies being advanced by Cala Health have demonstrated the growth potential of this field and the company’s future prospects.”

Dr. Rosenbluth, Founder and CEO of Cala Health, stated, “I am delighted to partner with such a strong investment team. This financing will help us launch new strategic development initiatives.”

Novartis was founded in Switzerland in 1996 and is one of the world’s three largest pharmaceutical companies, engaged in the global research, development, manufacturing, and sales of a broad portfolio of pharmaceutical products.

Baird Capital was founded in 1919 in Milwaukee, Wisconsin, USA, and engages in venture capital, growth equity, and private equity investments globally. Since its inception, the firm has raised and managed over $3.1 billion in capital and invested in nearly 300 portfolio companies.

LifeSci Venture Partners, established in 2017, is the early-stage investment arm of LifeSci Partners. LifeSci Partners is a life sciences and healthcare consulting firm founded in 2010 that primarily invests in medical technology companies at transitional stages.

Triventures is an Israel-based venture capital firm that invests in medical technology startups at various stages. The firm manages $130 million in assets and focuses on investing in companies in the fields of genomics, e-commerce health services, robotics, and healthcare cybersecurity.

Johnson & Johnson Innovation is a subsidiary of the Johnson & Johnson Group, primarily providing financing instruments such as early-stage research funding, seed capital, and equity investments. Additionally, it offers partners services including access to international markets, pricing and reimbursement support, market testing, and company formation.

Lux Capital Management is a research-driven investment firm founded in New York, United States, in 2000. The company focuses on seed and early-stage investments in enterprises within the physical and life sciences sectors.

Headquartered in Menlo Park, California, Lightstone Ventures was co-founded in 2012 by General Partners, Advanced Technology Ventures (ATV), and the life sciences team from Morgenthaler. The firm primarily invests in companies within the life sciences sector.

APVC is a strategic venture capital fund established by GlaxoSmithKline, primarily investing in companies in the field of bioelectronic medicines and technologies. Founded in 2012, the fund complements the work of GlaxoSmithKline’s bioelectronics R&D division.

dRx Capital is a joint venture investment firm co-founded by Novartis and Qualcomm, established in San Diego, California, in 2015. The company fosters the development of digital health products, services, and business models by investing in early-stage companies and leveraging its extensive networks across the pharmaceutical, mobile/IT, and investment sectors.

GV, established in 2009, is the venture capital arm of Alphabet. To date, the firm has invested in more than 300 companies across sectors including life sciences, healthcare, artificial intelligence, logistics, cybersecurity, and agriculture.

(Compiled by: Li Chengping)