Nesos

About Nesos

Nesos, a company operating in the therapeutic devices sector, was established in 2017 by co-founder Konstantinos Alataris. The company is focused on developing disease-modifying digital therapeutics for disorders mediated by inflammation. Dr. Alataris previously founded and led Nevro (NYSE: NVRO), a company that develops treatments for pain. In December 2020, Nesos came out of stealth and secured $16.5 million in a funding round led by Mayfield Fund, with participation from DigiTx Partners, Alexa Fund, and Astellas Rx+ Business Accelerator, LLC. This funding was intended to support ongoing clinical trials. A significant milestone was achieved in April 2021, when the U.S. Food and Drug Administration (FDA) granted Breakthrough Device Designation to Nesos's digital therapeutic for rheumatoid arthritis (RA). However, according to PitchBook, the company is now listed as out of business.

Nesos's core business revolves around its proprietary "e-mmunotherapy" platform, which aims to treat autoimmune disorders by modulating the central nervous system's control over immune function. The company's initial focus is on patients with rheumatoid arthritis who have not responded well to or are intolerant of traditional disease-modifying anti-rheumatic drugs (DMARDs). The business model is centered on obtaining FDA approval for its prescription digital therapeutics, which would then be available to medical practitioners. This positions Nesos in the HealthTech market, specifically within the therapeutic devices and other healthcare technology systems verticals.

The company's lead product is a non-invasive treatment system that includes purpose-built wireless earbuds and a software component. These earbuds deliver engineered electrical pulse sequences that target specific nerve pathways to reach brain regions responsible for regulating the immune response, particularly the cholinergic anti-inflammatory pathway. This drug-free approach is designed to restore the brain's ability to control inflammation, offering a new treatment option without the systemic side effects associated with many pharmaceutical treatments. A pilot clinical study with 30 RA patients demonstrated a meaningful reduction in disease severity. Data from the trial, published in *The Lancet Rheumatology*, showed that 53% of patients experienced a significant reduction in RA symptoms after three months. The company was also exploring applications for neurological and psychiatric conditions, including migraine prevention and postpartum depression.