SciSparc (NASDAQ:SPRC), a company traditionally focused on cannabinoid-based pharmaceuticals, has officially pivoted into the medical device sector.
The company announced Monday the closing of its acquisition of an extensive intellectual property portfolio from Xylo Technologies, centered on the MUSE™ (Medigus Ultrasonic Surgical Endostapler) system.
The MUSE system is a single-use, minimally invasive device designed for transoral fundoplication—a procedure that treats gastroesophageal reflux disease (GERD) by reinforcing the esophageal valve without external incisions.
The acquisition includes all associated patents, trademarks, and technical know-how.
In exchange for the assets, SciSparc issued ordinary shares representing 19.99% of its outstanding share capital to Xylo, with some consideration provided via pre-funded warrants.
This non-cash structure allows the micro-cap biotech to preserve liquidity as it shifts toward immediate commercialization.
SciSparc intends to capitalize on a proven commercial model.
Xylo previously successfully licensed the technology in Greater China in 2019, securing a $3 million upfront payment.
SciSparc now aims to replicate this success by seeking exclusive regional distribution partnerships across North America, Europe, and Latin America.
The strategic shift targets a massive and growing clinical need.
According to market data from MarkNtel Advisors, the global GERD device market was valued at $2.5 billion in 2024 and is forecast to grow at a CAGR of 3.24%, reaching $3.03 billion by 2030.
GERD affects an estimated 20% of the U.S. population, many of whom seek alternatives to lifelong reliance on proton pump inhibitors (PPIs).
By adding a late-stage, approved medical device to its portfolio, SciSparc significantly diversifies its risk beyond its clinical-stage pharmaceutical pipeline.