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FDA Rejects NeuroPace Label Expansion for Epilepsy Implant

A 15% drop in share price followed the FDA’s decision to block NeuroPace from expanding the label indication for its RNS System, a brain implant designed to treat refractory epilepsy. Regulators deemed the current Premarket Approval Panel Track Supplement insufficient for approval, forcing the company back into the submission process.

FDA Rejects NeuroPace Label Expansion for Epilepsy Implant

The company confirmed it has already met with federal regulators to discuss the rejection and intends to file a submission issue request. Despite the regulatory setback, clinical data for the device remains strong. Patients using the RNS System reported a 77% median reduction in generalized tonic-clonic seizures compared to baseline after 18 months, with 40% of participants achieving complete freedom from these seizures.

NeuroPace also provided two-year follow-up data at the agency’s request, documenting sustained improvement among patients who utilized stimulation for 23 of the 24 months post-implantation. Following the announcement, the company’s stock price slid to $12.99 in after-hours trading, extending a 9% decline observed over the previous three months.

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