NeuroMetrix, Inc. (NASDAQ:NURO), a company that manufactures and sells wearable neuro-stimulation therapeutic devices, has entered into a collaboration deal with GlaxoSmithKline (NYSE:GSK). GlaxoSmithKline is one of the world’s largest science-led global healthcare companies.
The collaboration revolves around the Quell Wearable Pain Relief Technology, in which GlaxoSmithKline will be acquiring exclusive ownership of the Quell technology in any market outside of the US. In return, GlaxoSmithKline will pay NeuroMetrix $5 million for the rights. NeuroMetrix will continue to have exclusive ownership of the Quell technology in the US market.
NeuroMetrix and GlaxoSmithKline will be working together to co-fund the further development of the Quell technology. The two companies have agreed to begin this collaboration from now until 2020. The agreement can also be further extended if both parties wish to do so.
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The result of the collaboration agreement between NeuroMetrix and GlaxoSmithKline is a near 25% increase in NeuroMetrix’s stock.
Currently, NeuroMetrix stock is trading at $2.1370, putting it up $0.4070, or 23.5%, from the previous closing price of $1.73. So far, the day’s trading has ranged from a low of $2.06 and a high of $2.96. This is the first significant stock jump that NeuroMetrix has experienced in the past four weeks, the stock trading in the $1.70-$1.90 range throughout the latter half of December until today’s announcement.
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GlaxoSmithKline is also up for the day at the time of writing, although not by as much. The stock is currently trading at $38.135, putting it up $0.215, or 0.57%, from the previous closing price of $37.50.
NeuroMetrix is one of the healthcare companies moving on the market today. Check out Aeterna Zentaris Inc. (TSX:AEZS) (NASDAQ:AEZS), another hot stock on the market today.
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