Dive Brief:
- SetPoint Medical said Monday that it raised $140 million to fund commercialization of its neuromodulation system to treat rheumatoid arthritis in a financing that included contributions from Abbott and Boston Scientific.
- SetPoint’s implantable device received Food and Drug Administration approval in July as a treatment option for people who do not respond to, or cannot tolerate, biologic or targeted drug therapies.
- CEO Murthy Simhambhatla said SetPoint plans to introduce the system in some U.S. cities this year, with an expanded rollout across the country to follow beginning in early 2026.
Dive Insight:
SetPoint’s device, which is implanted in the neck, delivers once-a-day electrical stimulation to the vagus nerve to activate the body’s anti-inflammatory pathways.
Development of the system was built on research by Kevin Tracey at the Feinstein Institutes for Medical Research, Northwell Health’s research arm, demonstrating the role of the vagus nerve in controlling inflammation. Tracey founded SetPoint in 2007.
The FDA approved SetPoint’s device with support from the 242-patient REST-RA clinical trial, which showed safety and effectiveness.
Simhambhatla has said SetPoint will work with providers and payers to make the treatment accessible to their patients. To prepare for commercialization, SetPoint said it named Erik Styacich, former vice president of sales for neuromodulation company Valencia Technologies, as vice president of sales and Spencer Bailey as vice president of market access and reimbursement. Bailey held similar roles at other neuromodulation companies, including MicroTransponder.
SetPoint said the $140 million in private funding included $25 million in a second tranche of its Series C round and $115 million in its Series D financing led by Elevage Medical Technologies and Ally Bridge Group. The company said Josh Makower joined its board of directors as a representative of Elevage, and Kevin Reilly, managing director and head of medtech investments at Ally Bridge, also joined the board.
New investors Northwell Health, SPRIG Equity and an undisclosed strategic investor also participated in the Series D financing. Returning investors included Abbott, Boston Scientific and several others.
SetPoint plans to evaluate the technology for other autoimmune conditions, including multiple sclerosis and Crohn’s disease.
