Nemaura Medical Inc (NASDAQ:NMRD) reported first-quarter earnings Friday that showed raised cash reserves as the company kicked off the commercial launch of SugarBEAT, the world’s first painless glucose monitor.
The Loughborough, UK-based medtech company revealed that, as of June 30, its combined cash balance was $3,068,541.
Nemaura also received an influx of cash in the form of an $8 million senior credit facility from its investors. The first $3.5 million of the loan will be available to the company immediately, which it plans to use to fund its European commercial launch. The non-dilutive credit facility will carry 8% interest with quarterly payments and the principal due only upon maturity in five years.
“We have bolstered our financial position to better support the commercial launch of SugarBEAT, which is underway, and we completed our FDA 510(k) submission,” said Nemaura CEO Faz Chowdhury in a statement.
The company launched shipments of its SugarBEAT continuous glucose monitors to patients Wednesday in the United Kingdom. The wave of shipments is the company’s first foray into the European market after receiving its CE mark, an EU seal of approval, in May.
After shipments to the UK, Nemaura plans to launch SugarBEAT in Germany in the third quarter. Nemaura is gearing up to sell its glucose device in other geographies like the Middle East and Australia that accept CE Mark approval.
Management said the company's $3,068,541 war chest plus $8 million credit facility will be more than sufficient. Chowdhury said: “Given our cash position, our credit line, expected revenue, and the significant potential value of our business, we believe we are in our strongest financial position to date, and have voluntarily suspended the ATM with Maxim."
For the quarter ended June 2019, the company reported a loss of roughly $1.2 million, an increase of $269,253 for the same period in the previous year. Research and development expenses spiked to $556,183 for the quarter.
In July, Nemaura submitted a De Novo medical device application to the US Food & Drug Administration for approval of SugarBEAT. For certain low-risk novel devices, the FDA's De Novo pathway offers a swifter route to market.
SugarBEAT consists of a daily disposable adhesive skin-patch connected to a rechargeable transmitter, with an app displaying glucose readings every five minutes for up to 24 hours. The genius of SugarBEAT lies in its skin-patch technology which allows for better glucose management.
According to Analysts at Ascendiant Capital Markets, Nemaura is targeting a $179 billion global market opportunity including insulin and non-insulin dependent diabetics, pre-diabetics, and wearable health-tech markets with its SugarBeat glucose monitor.
Contact Uttara Choudhury at [email protected]
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