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SciSparc Shares Jump on Medical Device IP Acquisition

MarketDash Editorial Team
12 days ago
SciSparc is jumping into the medical device business, snapping up endoscopy patents that target GERD treatment and marking a strategic shift beyond its neuroscience roots.

SciSparc Ltd. (SPRC) traded higher in Wednesday's premarket after signing a deal to acquire key endoscopy intellectual property from Xylo Technologies Ltd. The move signals a notable strategic pivot for a company that's spent most of its energy on clinical-stage neuroscience therapies.

Expanding the Playbook

SciSparc signed a binding term sheet to purchase a portfolio of patents, trademarks and technical know-how tied to advanced endoscopic imaging systems. The star of the show is the MUSE platform, a single-use device designed for transoral fundoplication procedures that treat gastroesophageal reflux disease.

Through its majority-held subsidiary NeuroThera Labs Inc., SciSparc has traditionally focused on clinical-stage therapies for neurological conditions. This acquisition pushes the company into procedural technology for gastrointestinal treatment markets, broadening its commercial footprint beyond drug development.

The GERD Opportunity

The MUSE device supports minimally invasive treatment for GERD patients, a condition that affects millions globally. SciSparc's strategy leans on Xylo's track record in Greater China, where the company secured a 2019 licensing deal with a Shanghai-based distributor that brought in $3 million upfront.

Now SciSparc wants to replicate that distribution model through exclusive regional partnerships in North America, Europe and Latin America. The bet is that what worked in China can translate to other major markets.

How They're Paying for It

Under the binding terms, SciSparc will issue equity equal to 19.99% of its outstanding shares upon closing. The company has the option to substitute part or all of that consideration with pre-funded warrants, giving it some flexibility on the capital structure front.

The acquisition hands SciSparc direct ownership of both the technology and the commercialization rights. That control could unlock future licensing revenue streams and supports the company's broader diversification push beyond its neuroscience pipeline.

SPRC Price Action: SciSparc shares were up 29.10% at $3.15 at the time of publication on Wednesday. The stock remains near its 52-week low of $1.75.

Back to News

SciSparc Shares Jump on Medical Device IP Acquisition

MarketDash Editorial Team
12 days ago
SciSparc is jumping into the medical device business, snapping up endoscopy patents that target GERD treatment and marking a strategic shift beyond its neuroscience roots.

SciSparc Ltd. (SPRC) traded higher in Wednesday's premarket after signing a deal to acquire key endoscopy intellectual property from Xylo Technologies Ltd. The move signals a notable strategic pivot for a company that's spent most of its energy on clinical-stage neuroscience therapies.

Expanding the Playbook

SciSparc signed a binding term sheet to purchase a portfolio of patents, trademarks and technical know-how tied to advanced endoscopic imaging systems. The star of the show is the MUSE platform, a single-use device designed for transoral fundoplication procedures that treat gastroesophageal reflux disease.

Through its majority-held subsidiary NeuroThera Labs Inc., SciSparc has traditionally focused on clinical-stage therapies for neurological conditions. This acquisition pushes the company into procedural technology for gastrointestinal treatment markets, broadening its commercial footprint beyond drug development.

The GERD Opportunity

The MUSE device supports minimally invasive treatment for GERD patients, a condition that affects millions globally. SciSparc's strategy leans on Xylo's track record in Greater China, where the company secured a 2019 licensing deal with a Shanghai-based distributor that brought in $3 million upfront.

Now SciSparc wants to replicate that distribution model through exclusive regional partnerships in North America, Europe and Latin America. The bet is that what worked in China can translate to other major markets.

How They're Paying for It

Under the binding terms, SciSparc will issue equity equal to 19.99% of its outstanding shares upon closing. The company has the option to substitute part or all of that consideration with pre-funded warrants, giving it some flexibility on the capital structure front.

The acquisition hands SciSparc direct ownership of both the technology and the commercialization rights. That control could unlock future licensing revenue streams and supports the company's broader diversification push beyond its neuroscience pipeline.

SPRC Price Action: SciSparc shares were up 29.10% at $3.15 at the time of publication on Wednesday. The stock remains near its 52-week low of $1.75.