Nexeon MedSystems Inc (NXNN)

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Nexeon Keeps Developments Flowing with New Clinical Study Treating Atrial Fibrillation

Source: https://www.baystreet.ca/stockstowatch/2405/Nexeon-MedSystems-Keeps-Developments-Flowing-with-New-Clinical-Study-Treating-Atrial-Fibrillation

Normally an acquisition and commencing a clinical trial are productive events for a small company, especially those in the hot "medtech" sector, but that hasn't been the case for Nexeon MedSystems Inc. (OTCQB:NXNN). The Belgium-based bioelectronics medical device company with an emphasis on neurological diseases has seen shares slide since they began trading less than a month ago from $2.00 each to under $1.00.

On August 9, Nexeon announced getting its ticker symbol from FINRA, eventually beginning trading on the OTCQB Marketplace on September 28. Concurrent with the listing, the company said it raised $1.165 million to further build out its pipeline. The company has had no shortcoming of high profile investors previously, including the likes of Boston Scientific (NYSE:BCX), Abbott Ventures and Surmodics to name a few. Nexeon further disclosed that they have applied to move to the OTCQX Marketplace, the top tier of OTC Markets with listing requirements similar to NASDAQ's Capital Market and NYSE American requirements.

About two weeks before it began trading as a public entity, Nexeon said it acquired Nexeon MedSystems Belgium, SPRL, a developer of neurostimulation products that recently acquired Medi-Line, a profitable, 25-year old Belgian medical device maker with 34 medical devices in its product bag being sold across 16 countries. Customers of Medi-Line include Fortune 500 companies, according to Nexeon.

Furthermore, Nexeon said it has been awarded a two-year, Phase II Small Business Research Innovation (SBIR) grant from the National Heart, Lung and Blood Institute, part of the National Institutes of Health that will fund up to $600,000 in preclinical research for developing nanocomposite drug-eluting balloon technology and other intellectual property related to precision medicine. This is on top of a 3.4 million euro award previously from the Walloon Region government of Belgium.

Wednesday afternoon, Nexeon announced completing an initial series of clinical studies evaluating the utilization of transcutaneous auricular vagus nerve stimulation (aVNS) for the relief of paroxysmal atrial fibrillation, the the most common heart arrhythmia that typically last for more than 30 seconds. It's not uncommon for people to progress from paroxysmal aFib to chronic aFib. Now Nexeon is moving forward with a 20-patient clinical study evaluating aVNS as a therapy for the uncomfortable heart condition.

While making it clear that the short-term goal is improved alternatives for aFib patients aside from today's current options of medication, pacemakers, ablations and cardioversions, Nexeon CEO Dr. Navid Khodaparast said that he recognizes the greater opportunities of monitoring and potentially modulating patients suffering from chronic diseases and managing multiple co-morbidities, opportunities that can present themselves through successful initial trials such as the upcoming study.

The news release from NXNN came late in the day and may have played a role in shares rising from 80 cents to 90 cents in the last hour of trading, although shares were still of 10 percent for the trading session.