Launching Prescription Digital Therapy Average tempo signed a licensing agreement with Biogen to develop and commercialize its product MR-004, which aims to improve mobility for people with multiple sclerosis (MS).
Under the agreement, MedRhythm will receive a $3 million upfront payment from Biogen, with the potential to earn up to $117.5 million if certain commercial and development milestones are met. The startup is also eligible to receive decentralized royalties based on sales.
MR-004 therapy is aimed at treating gait disability, a movement problem that occurs with MS that can cause difficulty walking. In 2020, MedRhythm receives FDA Breakthrough Device Designation for its product focus on walking impairment caused by chronic stroke. It uses sensors to measure how well the user can follow the beat of the song and adjusts tempo based on those metrics to improve results.
The company’s CEO Brian Harris said in a statement: “At MedRhythm, we’re committed to redefining what’s possible for people with neurological conditions by building products around the world. Significant evidence to impact symptoms has not been demonstrated by traditional treatments.” “We look forward to what our partnership with Biogen, a global leader in MS, can mean for the patients we serve around the world.”
WHY IT IMPORTANT
Based on National Multiple Sclerosis AssociationDifficulty walking is one of the common mobility concerns with MS, and people with the condition are prone to falls that can cause injury.
“As part of our aspirations in the digital health space, together with MedRhythm, we aim to advance a new, innovative treatment option for people living with MS that can help solve address mobility impairment, a common problem affecting their overall quality of life,” Martin Dubuc, head of Biogen Digital Health, said in a statement.
“Pioneering the field of digital therapy demonstrates Biogen’s commitment to advancing new therapies that we hope will improve outcomes for people living with MS.”
TREND TO BIGGER
Average tempo increases $25 million in Series B funding last July, bringing the total raised to $34 million. This is also not the company’s first commercialization partnership. About a year ago, it started working with Eversana life science trading services company to launch its chronic stroke tool.
Meanwhile, MedRhythm is not alone in striking deals with traditional pharmaceutical players for digital therapy. Swedish startup Alex Therapeutics, which raised 3.5 million euros last month, provides a platform to help life science and pharmaceutical partners create and launch digital therapies . Earlier this year, the company enter into a strategic trade partnership with Pfizer, which initially focused on creating digital therapies to treat nicotine addiction.
Sidekick Health, just announced a $55 million Series REDtransacted with Pfizer and Bayer. Happify Health recently announced a partnership with healthcare services and pharmaceutical company Zuellig Pharma to commercialize two of its prescription digital therapies in Asia.
