Neurology-focused company Flow Neuroscience has purchased fellow med tech company Halo Neuroscience for an undisclosed sum.
The pair both focus in brain stimulation technology to improve outcomes. However, historically Flow has zeroed in on the depression space, and Halo was best known for its movement performance enhancements.
As part of the deal Flow will be purchasing Halo’s technology, R&D and patents. Halo developed a headset designed to stimulate the motor cortex, which is responsible for planning, control and execution of voluntary movements. In fact, in 2018 the company scored $13 million in Series B for tis Halo Sport neurostimulation headset.
The technology was originally designed for athletes to improve muscle memory. However, Halo has been working on developing tools not just for physical movement enhancement, but for cognitive performance and mental wellbeing as well. In fact, the company has teamed up with researches from the Neural Engineering Group at City College New York and the Air Force Research Laboratory to research its ability to improve mental health.
WHY IT MATTERS
Flow said that the goal of the M&A is to expand its reach to treat mental health conditions which are commonly comorbid with depression.
“We are building on the technology Halo applied for the improvement of performance and well-being, which will revolutionize the application of tDCS for mental health disorders. By combining different neuromodulation techniques, we will be able to personalize treatments further to target brain regions with more precision,” Erik Rehn, CTO and cofounder of Flow Neuroscience, said in a statement.
“This will allow us to innovate treatments which are patient-specific and even more efficient and reliable. As we know mental health issues are as unique as the individual experiencing them, so further developing treatments that can target the precise areas a person is struggling with will change the future of mental health treatment as we know it.”
THE LARGER TREND
It’s no secret the Sweden-based Flow is looking to grow. In December, it reported a 247% increase in sales for its at-home brain-stimulation headset since the start of COVID-19. The company has also been adding to investments. In 2019, it landed $1.5 million in a round led by Khosla Ventures.
This isn’t the only company working in the brain-stimulation space. In June 2018, Medtronic landed FDA clearance for its Deep Brain Stimulation (DBS) Clinical Programmer and ActivaProgramming application.