Monday, July 17, 2006

Afferent's new CEO to move stroke tech to market

By Patricia Resende

An afferent vein carries blood toward the heart. An afferent nerve carries impulses to the central nervous system. David Hable, the new chief executive and president of Afferent Corp., plans to carry the company into its next stage of development.

With nearly $8 million in funding already in hand, the Providence, R.I.-based maker of a device to help stroke patients, is getting ready for another round.

Afferent's technology, emerging from research at Boston University, stimulates mechanoreceptor cells involved in sensory perception as a way to restore brain function following a stroke.

By the first quarter of 2007, Afferent executives envision that they will seek an additional $15 million to aid in research and to bring its product to market, according to Hable.

A veteran in the medical device arena, Hable was brought in last month after serving as president of Codman & Shurtleff, a medical device division of Johnson & Johnson focused on treatment of central nervous system disorders.

Jason Harry, Afferent's former CEO, will shift to the role of chief technology officer.

The company has an aggressive plan for its research on stroke rehabilitation and has reported successful results in its animal studies. In the short term, the company plans to bring its device to market. It uses stimulation electrodes worn inside a stroke victim's garments and hooked up to a power source.

On the product-development side, the company has already designed the initial electronics and is getting the technology into a prototype form to test it in different markets.

"In the non-invasive configuration, we think we can have a working prototype by the end of the year," Hable said.

In the long term, however, Afferent is working on a fully implantable device that would aid stroke victims in their recovery by providing stimulation therapy.

There are more than 5.5 million stroke patients in the United States, according to a 2006 report by the American Heart Association.

Already companies such as Seattle's Northstar Neuroscience Inc., which raised more than $100 million in an IPO and an additional $80 million in previous funding, have tackled this approach, but Hable said it is a much more invasive procedure.

"With North Star being as successful as they were ... we wanted to capitalize on it, but their (procedure) requires a craniotomy -- placing a device on the surface of the brain," he said. "The 'aha' was, if they are successful while demanding a higher-risk surgical approach, we might be able to do better."

Investors believe in Afferent's technology and, according to Hable, are happy with the progress.

Investors include New Science Ventures LLC of New York, which led the first round of $4 million; Village Ventures; Long River Ventures; and Point Judith Capital. Other investors include Nitta Corp. of Japan, the Slater Technology Fund, and Pharos LLC.

"Our current investors are very excited and we hope to attract additional investors," Hable said.

Although the company is still in its early stages, Hable said plans to add additional engineering muscle to the seven-person team.

"This is a very early-stage project," Hable said. "My experience has been more with larger companies. I would not have done something this early if I didn't see something fundamentally different in Afferent's technology."

Patricia Resende is a freelance writer in Bristol, R.I.