Otolith Labs Announces $20 Million Series A Financing by Morningside Ventures
WASHINGTON–(BUSINESS WIRE)–Otolith Labs, a medical technology company developing noninvasive wearable medical devices for the treatment of vestibular disorders, today announced the closing of a $20 million Series A financing round by Morningside Ventures. Building on prior investments from businessman Mark Cuban and leading ENT physicians, the proceeds will be used to support the company’s ongoing clinical programs, anticipated FDA approval and first commercial launch of a prescription wearable device using its noninvasive Vestibular System Masking (nVSM) technology for the treatment of chronic vertigo.
“Otolith Labs’ mission is to make daily living easier for the millions of Americans suffering from the symptoms of chronic vertigo and other vestibulogenic conditions. Chronic vertigo is a condition that prevents people from performing activities of daily living and has significant quality of life and economic impact,” said Anthony Aiudi at Morningside Ventures. “The team at Otolith Labs has developed a truly novel technology that could fundamentally change how chronic vertigo is treated today. Otolith Labs is leading the charge in developing a noninvasive and non-pharmacological therapy for those who have chronic vertigo and we look forward to being a part of this incredible journey.”
Otolith Labs’ nVSM technology is designed to provide immediate symptom relief for chronic vertigo. nVSM applies localized mechanical stimulation to the vestibular system through calibrated vibrations. The company received U.S. Food and Drug Administration (FDA) Breakthrough Device Designation last year for the prescription treatment of chronic vertigo. This designation, which can accelerate the development, assessment, and review of medical devices for pre-market approval, is only granted for devices that address an unmet need and show the potential to provide more effective treatment of life-threatening diseases or irreversibly debilitating conditions. Otolith Labs will soon be enrolling participants for its pivotal study to further evaluate the effectiveness of nVSM as a treatment of chronic vertigo.
“The closing of our Series A financing led by the expert team of investors at Morningside and the continued support of our existing investors underscores the growing momentum for the first wearable solution for a debilitating problem that adversely affects millions of Americans,” said Sam Owen, CEO and Founder of Otolith Labs. “The responders in our pilot studies reported instantaneous relief from their vertigo symptoms. The data from those studies support our plan to release our nVSM technology as an effective and well tolerated therapy for chronic vertigo. We founded the company to improve lives and with Morningside’s support, we are on the path to make this vision a reality.”
In Otolith’s pilot studies, which enrolled approximately 100 subjects, nVSM showed an immediate and robust therapeutic benefit over placebo, with those in the active group more than three times as likely to report improved symptoms than those in the placebo group (p < 0.05). Otolith invites clinical and scientific leaders to join us for the presentation of these results on our scientific poster and at the ENTrepreneur Faceoff showcase at the upcoming American Academy of Otolaryngology-Head and Neck Surgery (AAO-HNSF) 2022 Annual Meeting in Philadelphia, PA from September 10-14. Otolith is working closely with the leaders of the otolaryngology and medical community to ensure the rapid development and future adoption of this groundbreaking therapy to improve patients’ lives.
“As someone who sees chronic vertigo patients on a regular basis, I know how frustratingly few and effective treatment options are available today. I have been following Otolith Labs for 5 years and I am very encouraged by their development progress of their treatment for this debilitating condition,” said Dr. Michael Hoffer, Professor of Otolaryngology and Neurological Surgery at the University of Miami’s Miller School of Medicine.
About Otolith Labs
Otolith Labs is developing prescription medical devices for the treatment of vestibular disorders, conditions experienced by millions of Americans. Its flagship product, a patented noninvasive Vestibular System Masking (nVSM) technology, is intended to be the first prescription wearable device for the treatment of chronic vertigo, a symptom that affects more than 4 million Americans. The device, which received Breakthrough Device Designation from the FDA, uses precisely tuned vibrations to interact with the acceleration sensors in the inner ear, mitigating the symptoms of vertigo. Otolith is conducting clinical trials to evaluate its nVSM technology as an immediate symptom relief treatment for chronic vertigo associated with vestibular disorders.
About Morningside
Founded in 1986 by the Chan family, Morningside is a technology and life science venture investment firm. With offices in Boston, Shanghai and London, the firm invests globally. The group is managed by investment professionals who are entrepreneurial, have deep industry knowledge and are effective in the local environment in which they operate. In addition to its investment activities, Morningside Ventures is strongly committed to social responsibility. For more information visit morningside.com.
Caution – Investigational Device. Limited by United States law to investigational use.
