Neofect Acquires New Shares of Ybrain, Developer of 'Electronic Medicine'... "Accelerating Clinical Trials for Dementia and Depression"

[Asia Economy Reporter Hyunseok Yoo] NeoFect, a specialized company in innovative medical solutions, has entered the electroceuticals market targeting dementia, depression, and other conditions, seeking synergy with its existing rehabilitation medical device business.

On the 17th, NeoFect announced that it has additionally purchased 165,000 shares of Ybrain, a company specializing in electroceutical development, holding a total of 845,880 shares. The ownership stake is approximately 25%, making NeoFect the largest shareholder.

Ybrain developed the depression treatment device "MINDD," which helps improve neuropsychiatric disorders by regulating brain function through subtle electrical stimulation. It is an auxiliary treatment device that allows patients to effectively undergo home-based treatment. In addition to depression and dementia, Ybrain has various clinical pipelines including migraine, schizophrenia, insomnia, and autoimmune diseases. Recently, it secured new investments totaling 6.4 billion KRW from venture capital firms including NeoFect, Stick Investment, G&Tech Venture, and DTN Investment.

NeoFect CEO Ho-young Ban said, "The business models of NeoFect and Ybrain aim for 'telemedicine' that enables treatment of neurological disorders such as depression, dementia, and stroke at home, which can create significant synergy," adding, "Compared to the overseas market where big pharma companies continue large-scale investments, the domestic electroceuticals market is still in its early stages. We will accelerate product development and clinical trials with Ybrain and actively pioneer domestic and international markets through NeoFect’s global sales network."

He continued, "Ybrain is currently conducting clinical trials for various indications including depression, dementia, schizophrenia, and gaming addiction, and is completing the world’s first electroceutical home treatment platform with FDA approval becoming visible," and said, "They are focusing on entering domestic hospitals and overseas markets with the goal of a technology-specialized IPO next year."

Electroceuticals are a combination of electronic and pharmaceutical, referring to a treatment method that uses electrical signals such as current and magnetic fields to treat nerves. It can stimulate only specific cells or nerves that require treatment, minimizing side effects caused by conventional synthetic drugs or surgery. Various research results have shown effectiveness in nerve repair and treatment of intractable diseases such as depression, dementia, and rheumatoid arthritis. Recently, it has been recognized as a mega trend at CES 2020 and is called the "dream therapy."

NeoFect signed a memorandum of understanding (MOU) with Ybrain in 2018 for cooperation in product development, marketing, and clinical trials for the treatment and rehabilitation training of stroke and dementia patients.