Nemaura Medical Inc (NASDAQ:NMRD) believes it has reached its strongest position so far, given its cash position, credit line, expected revenues, and the significant potential value of its diabetes-focused offerings.
In a year-end update, the Loughborough, UK-based medtech group said 2019 had been "transformative" as it achieved a number of major milestones.
The group is behind sugarBEAT, a daily disposable adhesive skin-patch connected to a rechargeable transmitter, with an app displaying glucose readings every five minutes which acts as a continuous glucose monitor (CGM), and BEATdiabetes, a health subscription service. Both target the underserved US$69 billion market for Type 2 diabetics and US$50 billion market for pre-diabetics.
"During the year, we received CE Mark approval and laid the foundation for the commercial launch of sugarBEAT in Europe and several other key territories around the world where CE approval can be used as the basis of product registration," said CEO Dr Faz Chowdhury.
"We also launched a subscription-based package, BEATdiabetes to complement sugarBEAT CGM and provide users with additional digital and non-digital services for the management, reversal or prevention of diabetes."
The company started its first phase of the commercial launch of sugarBEAT in the UK with first shipments of devices to diabetic and pre-diabetic patients from whom positive feedback has been received, and is now poised to move aggressively into the commercial phase in Europe, it said.
Notably, the group also struck a partnership with UK-based Changing Health to bring digital behavior programs to improve the management and prevention of Type 2 diabetes in multiple territories starting with the UK and Ireland.
Adequate cash on hand
Nemaura said it had adequate cash on hand and secured a US$8 million debt facility from an existing, long-term investor.
"In the beginning of December, management decided to effect a 1-for-10 reverse split, which allowed the company to comfortably regain compliance with NASDAQ and affords Nemaura a share price that management believe will enable the company to attract a broader universe of institutional investors," it added.
Shares in the company advanced 7.3% in New York to US$3.59 each.
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