Vivani Medical to Spin-Off Neurostimulation Division Cortigent for Nasdaq Listing

Vivani Medical, Inc. (NASDAQ: VANI) has announced a strategic move that could reshape its future and that of its shareholders. The company plans to spin off its neurostimulation division, Cortigent, as an independent, publicly-traded entity. This decision comes at a time when the biopharmaceutical industry is buzzing with innovation and investment opportunities, and Vivani aims to capitalize on this momentum by focusing on its core competencies.

The spin-off of Cortigent is more than just a corporate restructuring; it's a strategic pivot that could unlock significant value for both Vivani and its shareholders. Cortigent, formerly known as Second Sight Medical Products, has a rich history in developing groundbreaking neurostimulation technologies. Its Orion Cortical Visual Prosthesis System, for instance, has shown promising results in treating blindness due to glaucoma, diabetic retinopathy, and other common causes. The system received FDA Breakthrough Device designation and completed a 6-year Early Feasibility Study with encouraging safety and efficacy results.



The global neuromodulation device market is forecast to grow to $12.6 billion by 2034, up from $6.3 billion in 2024, according to GlobalData. This growth is driven by the rising prevalence of chronic diseases and advancements in technology, which are increasing regulatory approvals for neurostimulator devices. Cortigent's technology, which includes precision neurostimulation for conditions such as blindness and paralysis due to stroke, is well-positioned to capitalize on this growing market.

Vivani's decision to spin off Cortigent is driven by the belief that this move will create two focused companies dedicated to driving current and future value in their respective therapeutic areas of expertise. As Vivani CEO Adam Mendelsohn stated, "We believe that the best way to realize the full potential of Cortigent is to enable it to operate independently with a management team dedicated to advancing its proprietary neuromodulation technology and developing medical devices that address human conditions where there is significant unmet medical need. Our mission at Vivani remains unchanged as we continue to leverage our proprietary NanoPortal™ implant technology and advance the development of our portfolio of miniature, subdermal GLP-1 implants with once or twice-yearly dosing for chronic weight management, type 2 diabetes, and other chronic diseases."

The spin-off is expected to provide investors with greater visibility into the financial and operational structures of each company, which could lead to a more accurate valuation of Vivani Medical's stock. Additionally, the spin-off will allow Vivani Medical to benefit from separate capital structures and capital allocation strategies, which could result in more efficient use of resources and improved financial performance.

In the short term, the spin-off announcement has already shown some positive market reaction, with Vivani's stock price rising by 1.8% at market open compared to the pre-announcement market close. This initial reaction suggests that investors are optimistic about the potential benefits of the spin-off. However, it is important to note that this reaction occurred amidst falling US stocks fueled by the US government’s tariffs, making it difficult to gauge the true investor sentiment towards the spin-off.

In the long term, the spin-off is expected to create two focused companies dedicated to driving current and future value in their respective therapeutic areas of expertise. Vivani Medical will be able to focus exclusively on the development of its NanoPortal drug implants, which are designed to provide once or twice-yearly dosing for chronic weight management, type 2 diabetes, and other chronic diseases. This focus is expected to result in additional operating efficiencies and a clearer understanding of Vivani's strategy, which could lead to increased investor confidence and a higher market valuation.

The spin-off of Cortigent is a bold move by Vivani Medical, but it's one that could pay off handsomely for shareholders. By focusing on its core competencies and allowing Cortigent to operate independently, Vivani is positioning itself to capitalize on the growing demand for innovative biopharmaceutical solutions. The future looks bright for Vivani Medical, and this spin-off could be the catalyst that propels the company to new heights.