Neurometrix Inc (NASDAQ: NURO) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced a collaboration that’s leading to excitement among investors and sending the stock toward the top. Today, we’ll talk about the collaboration, what we’re seeing from the stock, and what we’ll be watching for with regard to NURO ahead.
NURO Enters Agreement With GSK
As mentioned above, NeuroMetrix is having an incredibly strong start to the trading session this morning after announcing a collaboration. In a press release issued early this morning, the company said that it has entered into a collaboration with GlaxoSmithKline (GSK).
In the release, NURO informed investors that the collaboration with GSK involves Quell® Wearable Pain Relief TechnologyTM. In the release, the company said that the key elements of the collaboration agreement are:
- GSK Consumer Healthcare has acquired exclusive ownership of Quell technology for markets outside of the United States.
- NURO will retain exclusive ownership of Quell technology in the United States market.
- Both NeuroMetrix and GlaxoSmithKline will co-fund the development of Quell technology for a 3-year period that will start in 2018 and run through 2020. Annual renewals will take place based on mutual agreement.
- Finally, GSK will pay NURO $5 million for the assets relating to Quell technology in markets outside of the United States and up to $21.5 million upon the achievement of certain development and commercial milestone.
In a statement, Shai N. Gozani, M.D., Ph.D., President and CEO at NURO, had the following to offer:
“We are excited by the opportunity to partner with GSK Consumer Healthcare to expand access to Quell technology among chronic pain sufferers around the world. GSK Consumer Healthcare is a world leader in over-the-counter pain relief, with several top global brands… We will continue to focus on building Quell into a leading U.S. consumer healthcare brand while collaborating with GSK on Quell product development and supporting their international commercialization efforts. We believe that GSK is our ideal Quell partner as we share a deep commitment to science-based therapies and to the health and quality of life of our customers.”
What We’re Seeing From The Stock
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released by a publicly-traded company, we can expect to see gains in the value of the stock associated with the company. In this particular case, the news released by Neurometrix proved to be overwhelmingly positive. So, it’s no surprise to see a positive reaction in the market. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:43), NURO is trading at $2.40 per share after a gain of $0.68 per share (39.33%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NURO and GSK. In particular, we’re interested in following the ongoing development of Quell and excited to see the results of this partnership. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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