electroCore Announces Remittance of Annual License Fee from Teijin for Certain Exclusive Rights in Japan

ROCKAWAY, N.J., April 11, 2023 (GLOBE NEWSWIRE) -- electroCore, Inc. (the “Company”) (NASDAQ: ECOR), a commercial-stage bioelectronic medicine and wellness company, today announced that Teijin Limited (Teijin), a global conglomerate based in Japan offering advanced solutions in healthcare, materials and information technology, has remitted payment of the annual fee under its license agreement with the Company for certain exclusive rights to the Company’s non-invasive vagus nerve stimulation (nVNS) technology for commercialization in Japan for a range of primary headache disorders. 

Under the license agreement, the Company received a non-refundable, upfront payment for the licenses and rights granted to Teijin. Teijin’s exclusive rights are subject to a license fee payable on each anniversary of the license agreement until the first commercial sale in Japan on any approved indication. By making the annual license fee payment, Teijin has extended its exclusive rights for another year.

The financial terms of the license agreement also contain milestone payments, payable upon the decision by Teijin to commercialize the licensed product for specific indications. Upon favorable regulatory and payor coverage decisions in Japan, the parties will enter into an exclusive commercial supply agreement for gammaCore™ nVNS. 

“Teijin has been an excellent partner thus far as we work together in navigating the regulatory pathway in Japan,” mentioned Joshua Lev, Chief Strategy Officer of the Company. “Teijin continues to show commitment to driving the commercialization of nVNS in Japan, and we are pleased to work side by side with them as we advocate for the improvement of the health and lives of primary headache sufferers across the globe through the use of nVNS.” 

The license agreement contains customary terms and conditions, including renewal and termination provisions, as well as minimum purchase commitments once a commercial supply agreement is in place. Furthermore, Teijin is responsible for all costs associated with regulatory approval by the Pharmaceuticals and Medical Devices Agency (PMDA), the Japanese FDA equivalent. As part of the license agreement, Teijin will have the right of first negotiation for a license to additional indications in Japan. 

About the Teijin Group
Teijin (TSE: 3401) is a technology-driven global group offering advanced solutions in the areas of environmental value; safety, security and disaster mitigation; demographic change and increased health consciousness. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has over 170 companies and around 20,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY836.5 billion (USD 6.8 billion) and total assets of JPY 1036.4 billion (USD 8.4 billion) in the fiscal year ending March 31, 2021. 

For more information, please visit https://www.teijin.com/.

About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine and wellness company dedicated to improving health through its non-invasive vagus nerve stimulation (“nVNS”) technology platform. Our focus is the commercialization of medical devices for the management and treatment of certain medical conditions and consumer product offerings utilizing nVNS to promote general wellbeing and human performance in the United States and select overseas markets.

For more information, visit www.electrocore.com.

About gammaCore™
gammaCore™ (nVNS) is the first non-invasive, hand-held medical therapy applied at the neck to treat migraine and cluster headache through the utilization of a mild electrical stimulation to the vagus nerve that passes through the skin. Designed as a portable, easy-to-use technology, gammaCore is self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed on a patient’s neck over the vagus nerve, gammaCore stimulates the nerve’s afferent fibers, which may lead to a reduction of pain in patients.

gammaCore™ is intended to provide non-invasive vagus nerve stimulation (nVNS) on the side of the neck for preventive treatment of migraine and the acute treatment of pain associated with migraine in patients 12 and older. gammaCore is also indicated for adjunctive use for preventive treatment of cluster headache, acute treatment of episodic cluster headache, and treatment of hemicrania continua and paroxysmal hemicrania in adult patients.

gammaCore should not be used by people with an active implantable medical device. Please refer to gammaCore.com or the Instructions for Use for complete safety information, including indications, contraindications, warnings, cautions, and instructions.

Forward-Looking Statements
This press release and other written and oral statements made by representatives of electroCore may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about electroCore's business prospects and clinical and product development plans (including with respect to enrollment in ongoing studies); its pipeline or potential markets for its technologies; the timing, outcome and impact of regulatory, clinical and commercial developments including online, e-commerce, direct-to-consumer channels, telehealth portal, and cash pay initiatives including Japan and its license agreement with Teijin; the issuance of U.S. and international patents providing expanded IP coverage; the possibility of future business models and revenue streams from the Company’s potential use of nVNS for the acute treatment of PTSD, stroke and hemorrhagic brain injury, the potential of nVNS generally and gammaCore in particular and other statements that are not historical in nature, particularly those that utilize terminology such as "anticipates," "will," "expects," "believes," "intends," other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore™, the potential impact and effects of COVID-19 on the business of electroCore, electroCore’s results of operations and financial performance, and any measures electroCore has and may take in response to COVID-19 and any expectations electroCore may have with respect thereto, competition in the industry in which electroCore operates and overall market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents electroCore files with the SEC available at www.sec.gov.

Rich Cockrell
CG Capital