Kandu Health, Inc. and Neurolutions, Inc. announced today that they have merged to form Kandu, Inc., a company poised to transform stroke recovery care through an innovative combination of brain-computer interface (BCI) technology and personalized telehealth services. The merger coincides with the completion of a $30 million financing round co-led by Ally Bridge Group and AMED Ventures, with participation from existing investors.
The newly formed Kandu, Inc. aims to address the fragmented nature of post-acute stroke care by providing an end-to-end solution accessible to patients and caregivers in their homes. Leo Petrossian, former CEO of Neurolutions, will lead Kandu, Inc. as CEO, while Kirsten Carroll, previously CEO of Kandu Health, will assume the role of Chief Marketing Officer.
"We are excited to bring together Neurolutions' medical device expertise with the AI-supported digital health solutions of Kandu Health," said Petrossian. "This merger positions Kandu, Inc. as a leader in the stroke recovery space and allows us to offer a seamless continuum of care, from the immediate post-acute phase through chronic rehabilitation and recovery."
Complementary Technologies Creating a Comprehensive Solution
The merger brings together two companies with complementary strengths in stroke recovery. Kandu Health, founded in 2022, provides remote multidisciplinary support to stroke survivors through licensed clinicians and a user-friendly app. Neurolutions, established in 2007, developed the IpsiHand® System, the only non-invasive FDA-cleared breakthrough device that accelerates motor recovery of affected upper limbs after chronic stroke.
By integrating these technologies, Kandu, Inc. will offer a comprehensive suite of services including telehealth rehabilitation, therapy monitoring, education, caregiver support, advocacy, and navigation. The combined platform aims to empower stroke survivors while helping healthcare providers and payers manage post-stroke care more effectively.
"This is a merger of complementary companies with aligned missions to improve quality of life for people affected by stroke," said Carroll. "IpsiHand is the first BCI technology cleared by the FDA for stroke rehabilitation and the first to receive a Centers for Medicare and Medicaid Services (CMS) reimbursement code. Kandu Health has demonstrated dramatically lower rates of hospital readmission and significantly improved functional outcomes in patients recovering from stroke in the home setting."
Addressing Critical Gaps in Post-Stroke Care
The merger addresses significant challenges in post-acute stroke care, which has historically been fragmented and short-term. Under current paradigms, 28% of stroke survivors rate their quality of life as "poor or worse than death" a year after stroke. Kandu, Inc. aims to bridge this gap by providing continuous, evolving support throughout the recovery journey.
Dr. Demetrius Lopes, Neurosurgery Advocate Health, commented on the significance of this approach: "Despite years of improvements in stroke treatment technology and acute intervention, our system of care has not yet produced meaningful improvements in patients' functional outcomes following hospital discharge. Kandu offers a new approach to post-acute care that I believe will continue to improve functional outcomes for stroke survivors."
Promising Clinical Evidence
Both companies bring strong clinical evidence supporting their approaches to stroke recovery. Clinical data from Kandu Health shows that more than 80% of stroke patients achieved independent living at 90 days, with readmission rates approximately 50% lower than those reported in published literature. After receiving Kandu Health services for 90 days, 57% of stroke survivors saw an improvement in their Modified Rankin Scale (mRS) score, a global measure of function after stroke.
The IpsiHand System has also demonstrated impressive results. In a prospective clinical study, approximately 70% of chronic stroke patients with impaired upper extremity motor function experienced improved arm and hand movements after 12 weeks. All stroke survivors who completed the Arm Motor Ability Test showed clinically significant improvement in functional tasks requiring upper extremity use. Participants also experienced an average improvement of 8.1 points on the Fugl-Meyer Assessment, the gold standard for evaluating arm function after stroke.
Data-Driven Approach to Recovery
A key aspect of the merged company's strategy involves leveraging high-quality data collected about stroke patients' physiology, activities, and clinical outcomes. These proprietary datasets are being used to develop AI solutions aimed at improving workforce efficiency and supporting exceptional outcomes for stroke survivors.
The $30 million in financing will support ongoing commercialization efforts and the continued execution of Kandu's mission to establish a new standard of care for stroke recovery that is accessible to patients at home.
About the Companies
Kandu Health was launched inside Imperative Care and spun out as an independent company in 2022 to provide tech-enabled healthcare services to people recovering from stroke. The company delivers integrated solutions that aid in the stroke recovery process for survivors, healthcare providers, and care partners.
Neurolutions is a medical technology company focused on advancing neurorehabilitation through cutting-edge research and development. The IpsiHand System was granted Breakthrough Device designation by the FDA through the De Novo premarket review pathway as a therapeutic device in neurorehabilitation. The device was co-invented by Eric C. Leuthardt, MD, a neurosurgeon at Washington University in St. Louis.
The merger represents a significant advancement in stroke recovery care, combining innovative technologies with personalized support to improve outcomes for the millions of people affected by stroke each year.
