Tivic Health to Acquire Assets of Reliefband
Tivic Health® Systems, Inc., a bioelectronic medicine-focused commercial-phase health technology business, announced that it has signed a binding deal to buy Reliefband Technologies, LLC’s nausea treatment product line and all associated assets.
The wearable, FDA-approved electronic therapies for treating nausea and vomiting were pioneered by Reliefband. There are numerous products from Reliefband that are both over-the-counter and prescription-only.
About 1 in 6 US individuals have recurring nausea. The market for treating motion sickness is estimated to be worth $2.4 billion in the US and $5.5 billion worldwide, with a 6.5% CAGR.
FDA approval has been granted for Reliefband’s wrist-worn electronic nerve stimulators to alleviate nausea related to seven distinct therapeutic indications, including motion sickness, pregnancy, migraines, anxiety, chemotherapy, various medicines, and hangovers.
40 peer-reviewed clinical studies and more than 3500 Amazon reviews with an average rating of 4+ stars support the patented items.
Customers can manage some medical illnesses with the help of goods like Reliefband and ClearUP without experiencing the problems and side effects frequently connected with using medications. Both are FDA-approved, extremely powerful, quick-acting, practical, and drug-free.Both currently are sold primarily online, and both have received CE Marks allowing international expansion.
Tivic will also purchase Reliefband’s Reletex-branded prescription nausea medications in addition to their direct-to-consumer branded goods under the Reliefband name. Hospitals and medical professionals presently provide Reletex products, and some circumstances are covered by reimbursement under HCPCS number E0765.
The inclusion of clinically validated, revenue-generating bioelectronic products that have had significant customer uptake and growth will help Tivic expand, said Ernst.
Up to $33.5 million in consideration will be given by Tivic, of which up to $1.5 million may be paid, at Tivic’s option, in restricted Tivic common stock. Less Reliefband transaction costs and any debt Reliefband owes at closing, consideration is subject to working capital adjustments.
The deal is anticipated to close in the fourth quarter of 2022 or the first quarter of 2023, subject to the fulfillment of a few standard closing requirements, including but not limited to obtaining the financing required to cover the purchase price. A current report on Form 8-K that Tivic submitted to the Securities and Exchange Commission contains more details on the transaction (SEC).