SciSparc Ltd. (NASDAQ:SPRC) jumped 26.8% in premarket trading on Wednesday after the clinical-stage pharmaceutical firm announced it has entered into a binding term sheet to acquire patents and intellectual property tied to advanced endoscopic systems—including the MUSE™ device—from Xylo Technologies Ltd.
The MUSE™ system is a disposable, single-use endoscopic tool used for transoral fundoplication, a minimally invasive procedure for treating gastroesophageal reflux disease (GERD). SciSparc said it intends to pursue global commercialization through exclusive regional distribution agreements, echoing Xylo’s approach in Greater China that generated a $3 million upfront payment.
Under the terms of the agreement, SciSparc will obtain Xylo’s full slate of patents, trademarks, technical know-how, and other intellectual property associated primarily with the MUSE™ platform. In return, SciSparc will issue ordinary shares equal to 19.99% of its outstanding share count to Xylo once the deal closes, with an option to issue pre-funded warrants instead.
The acquisition opens the door for SciSparc to enter the expanding GERD device market—estimated at roughly $2.5 billion in 2024 and expected to reach $3.03 billion by 2030, according to MarkNtel Advisors. The market is projected to grow at a CAGR of 3.24%.
SciSparc plans to replicate Xylo’s licensing and distribution strategy across major global regions, including North America, Europe, and Latin America, as it works to commercialize the device and create new revenue opportunities.