Commercial Progress in Diabetes Market
WALTHAM, Mass.--(BUSINESS WIRE)--Jul. 26, 2012--
NeuroMetrix, Inc. (Nasdaq: NURO), a medical device company focused on
the diagnosis and treatment of the neurological complications of
diabetes, today reported business and financial highlights for the
quarter and six months ended June 30, 2012.
There was encouraging progress in the diabetes business as the Company
accelerated sales of NC-stat® DPNCheck™, its diagnostic test
for the evaluation of peripheral neuropathies such as diabetic
peripheral neuropathy (DPN). DPN affects over 50% of people with
diabetes and causes significant morbidity including pain, increased risk
of falling in the elderly, and is the primary trigger for diabetic foot
ulcers which may require lower extremity amputations. The Company also
reported progress in commercializing its R&D pipeline with the SENSUS™
pain management device which is targeted for market launch in the fourth
quarter of 2012.
Recent highlights include:
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Penetration of the managed care market was initiated with a
substantial order from WellMed Medical Group of San Antonio, TX.
WellMed provides care to approximately 100,000 Medicare Advantage
patients and plans to regularly evaluate its patient population for
peripheral neuropathies such as DPN. During the second quarter NC-stat
DPNCheck devices and consumables were delivered to WellMed, training
was completed and product use has started. Managed care represents the
most compelling near term market opportunity for NC-stat DPNCheck.
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Retail health is an important market where the Company is building a
presence. During the second quarter, the Company filled a large order
from Wal-Mart Canada Corp. and Wal-Mart began to offer foot
examinations, with NC-stat DPNCheck as a key component, at its
Canadian pharmacies that have a diabetes focus.
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The strategically important endocrinology and podiatry markets
continued to show progress in NC-stat DPNCheck device placements at
the pace seen in preceding quarters.
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The installed base of NC-stat DPNCheck devices reached 500 in May and
now stands at 590. The Company is at a pace to achieve its goal of
1,000 devices in the market by year end.
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Commercial launch of SENSUS remains on track for the fourth quarter.
The Company filed a 510(k) submission with the FDA in April 2012 and
subsequent requests for additional information have been promptly
addressed by the Company. The Company filed a second 510(k) submission
in June 2012 for the Company’s proprietary SENSUS electrode. This
single-patient electrode will provide 1-2 weeks of use and represents
a recurring revenue stream from use of the SENSUS product.
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The recent American Diabetes Association (ADA) meeting provided an
opportunity for the Company to discuss its products and pipeline with
leaders in the diabetes community.
“Our recent successes in managed care and retail health are
encouraging,” said Shai N. Gozani M.D., Ph.D., President and Chief
Executive Officer of NeuroMetrix. “Our challenge is to leverage growing
product recognition into broader adoption, particularly in managed care,
while remaining on track with the SENSUS commercial launch. We continue
to see an attractive diabetes franchise opportunity focused on DPN.”
The Company reported its financial results for the second quarter of
2012. Total revenues were $2.2 million compared with $2.6 million for
the second quarter of 2011. Revenues increased sequentially from $2.1
million in the first quarter of 2012. Diabetes products contributed
revenue of $648,000 with the balance of $1.6 million in revenue derived
from the legacy neurodiagnostic business now managed to optimize cash
flow. Gross margin in the second quarter of 2012 was 55% of total
revenues compared with 57% of total revenues for the second quarter of
2011. Operating expenses for the second quarter of 2012 were $4.0
million compared to $3.9 million in the second quarter of 2011. Net loss
for the second quarter of 2012 was $2.8 million, or $0.22 per share. The
Company reported a net loss of $2.4 million for the second quarter of
2011, or $0.63 per share. NeuroMetrix reported net cash usage of $1.9
million in the second quarter of 2012 and ended the period with cash
resources of $13.3 million.
For the six month period ended June 30, 2012, the Company reported
revenues of $4.3 million and a net loss of $5.5 million, or $0.53 per
share. In the comparable six month period ended June 30, 2011, the
Company recorded revenues of $5.5 million and a net loss of $5.1
million, or $1.33 per share.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, July 26, 2012
at 8:00 a.m., Eastern time. To access the call, dial 866-813-5647
(domestic), or 847-619-6249 (international). The confirmation code is
32913623. The call will also be webcast and will be accessible from the
Company's website at http://www.neurometrix.com
under the "Investor Relations" tab. A replay of the conference call will
be available for three months starting two hours after the call by
dialing 888-843-7419 (domestic) or 630-652-3042 (international), and the
confirmation code is 32913623.
About NeuroMetrix
NeuroMetrix is an innovative medical device company that develops and
markets home use and point-of-care devices, associated consumables, and
support software for the treatment and management of diabetes and its
complications. The company is focused on nerve related complications of
diabetes, called diabetic neuropathies, which affect over 50% of people
with diabetes. If left untreated, diabetic neuropathies trigger foot
ulcers that may require amputation, cause disabling chronic pain, and
increase the risk of falling in the elderly. The annual cost of diabetic
neuropathies has been estimated at $14 billion in the United States. The
company’s products are used by physicians and other clinicians in retail
health settings such as pharmacies, and by managed care organizations to
optimize patient care and reduce healthcare costs. The company markets
the NC-stat DPNCheck device, which is a rapid, accurate, and
quantitative point-of-care test for diabetic neuropathy. This product is
used to detect diabetic neuropathy at an early stage and to guide
treatment. The company is in late stage development of SENSUS, a pain
management device. The company has additional therapeutic products in
its pipeline. For more information, please visit http://www.neurometrix.com.
Safe Harbor Statement
The statements contained in this press release include forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, including, without limitation, statements regarding
the company’s or management’s expectations relating to the adoption of
NC-stat DPNCheck, our ability to build a successful business focused on
diabetic peripheral neuropathy, and our hope of expanding our commercial
sales channel of our diabetic neuropathy products. While the company
believes the forward-looking statements contained in this press release
are accurate, there are a number of factors that could cause actual
events or results to differ materially from those indicated by such
forward-looking statements, including, without limitation, our estimates
of future performance, including the expected timing of the launch of
our SENSUS product; the timing, costs and other limitations involved in
obtaining regulatory clearance or approval for our SENSUS product; and
our ability to successfully develop, receive regulatory clearance or
approval, commercialize and achieve market acceptance for any of our
products. There can be no assurance that future developments will be
those that the company has anticipated. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
including those risks, uncertainties and factors referred to in the
company’s most recent Annual Report on Form 10-K as well as other
documents that may be filed from time to time with the Securities and
Exchange Commission or otherwise made public. The company is providing
the information in this press release only as of the date hereof, and
expressly disclaims any intent or obligation to update the information
included in this press release or revise any forward-looking statements.
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NeuroMetrix, Inc.
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Condensed Statements of Operations
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(Unaudited)
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Quarter Ended
June 30,
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Six Months
Ended June 30,
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2012
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2011
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2012
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2011
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Revenues
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$
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2,205,831
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$
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2,571,840
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$
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4,287,373
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$
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5,476,686
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Cost of revenues
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983,350
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1,110,073
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2,118,294
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2,365,648
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Gross margin
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1,222,481
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1,461,767
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2,169,079
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3,111,038
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Operating expenses:
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Research and development
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1,020,726
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1,123,509
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1,998,792
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2,220,331
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Sales and marketing
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1,595,642
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1,479,519
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3,129,743
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3,354,129
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General and administrative
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1,382,268
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1,301,476
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2,573,332
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2,683,571
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Total operating expenses
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3,998,636
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3,904,504
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7,701,867
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8,258,031
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Loss from operations
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(2,776,155
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(2,442,737
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(5,532,788
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(5,146,993
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Interest income
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4,027
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6,019
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8,325
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13,018
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Net loss
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$
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(2,772,128
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$
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(2,436,718
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$
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(5,524,463
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$
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(5,133,975
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Net loss per common share, basic and diluted
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$
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(0.22
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$
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(0.63
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$
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(0.53
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$
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(1.33
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Note: per share amounts have been adjusted to reflect the Company’s 1:6
reverse stock-split which occurred on September 1, 2011.
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Condensed Balance Sheets
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(Unaudited)
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June 30,
2012
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December 31,
2011
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Cash and cash equivalents
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$
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13,324,824
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$
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10,290,446
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Other current assets
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1,972,847
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3,204,860
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Noncurrent assets
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384,776
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725,477
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Total assets
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$
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15,682,447
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$
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14,220,783
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Current liabilities
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$
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2,419,659
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$
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3,012,916
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Noncurrent liabilities
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152,573
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119,346
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Stockholders’ equity
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13,110,215
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11,088,521
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Total liabilities and stockholders’ equity
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$
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15,682,447
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$
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14,220,783
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Source: NeuroMetrix, Inc.
NeuroMetrix, Inc.
Thomas T. Higgins, 781-314-2761
Chief
Financial Officer
neurometrix.ir@neurometrix.com
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