The company will expand its bioelectronic offerings with the Reliefband line of nausea and vomiting treatments.
Tivic Health Systems, a commercial-phase health technology company focused on bioelectronic medicine, announced that it has entered into a definitive agreement to acquire the Reliefband product line for nausea treatment and all related assets from Reliefband Technologies.
Reliefband offers FDA-cleared wrist-worn electronic nerve stimulators for treatment of nausea and vomiting associated with seven independent clinical indications, including nausea from motion sickness, pregnancy, migraines, anxiety, chemotherapy, various medications, and hangovers. The company offers multiple products that are available both over the counter and by prescription.
“We are incredibly excited to add the full suite of Reliefband products to our commercial portfolio,” said Jennifer Ernst, CEO of Tivic Health, in prepared remarks. “The Reliefband team successfully pioneered a direct-to-consumer business model for medical products. This acquisition, when combined with our growing direct-to-consumer sales of ClearUP, will significantly accelerate Tivic’s revenue opportunities.”
Both Reliefband and ClearUP products offer consumers ways to manage health-related conditions without the issues and side effects often associated with medication use. Both are FDA-cleared, highly effective, fast-acting, convenient, and drug-free. They currently are sold primarily online, and both have received CE Marks, allowing for international expansion.
In addition to the Reliefband direct-to-consumer branded products, Tivic will also acquire Reliefband’s Reletex-branded prescription nausea treatments. Reletex products are currently distributed by hospitals and medical professionals and are reimbursed under HCPCS code E0765 for certain conditions.
Consideration to be provided by Tivic consists of up to $33.5 million, of which up to $1.5 million can be paid, at the election of Tivic, in restricted common stock of Tivic. Consideration is subject to working capital adjustments, less Reliefband transaction expenses and any indebtedness of Reliefband at closing.
The transaction is expected to be completed in 4Q22 or 1Q23 after the satisfaction of certain customary closing conditions, including, but not limited to, securing the financing necessary to pay the purchase price.