The Company is capitalizing on research & development capabilities and
intellectual property to build a franchise which addresses major unmet
medical needs. The company is primarily focused on the most common
complication of diabetes, diabetic peripheral neuropathy or DPN. If left
untreated, DPN causes disabling chronic pain, called painful diabetic
neuropathy, triggers foot ulcers that may require amputation, and
increases the risk of falls in the elderly. The Company has two
commercial products that address DPN and similar neurological disorders.
Fourth quarter 2013 revenue of
$1.4 millionrepresented sequential growth from $1.3 millionin revenue reported for the third quarter and $1.2 millionfor the second quarter of 2013. Fourth quarter revenue from diabetes products was $565,000, an increase of 45% from the third quarter.
SENSUSdistribution was enhanced under an agreement with the Recovery Sciences division of DJO Global, the leading US manufacturer and distributor of electrotherapy products. DJO Globalhas a national reach through its domestic direct sales force. This agreement will substantially expand patient access to SENSUS, particularly in the pain management and podiatry markets.
During the fourth quarter, 358
SENSUSdevices were shipped. This follows 557 devices in the third quarter and 208 devices in the second quarter. Lower fourth quarter shipments reflect the conclusion of market pilot programs, including with DJO Global. Shipments to date in the first quarter of 2014 have already exceeded 650 devices, reflecting a successful transition to national distribution.
Initiated development of an over-the-counter chronic pain therapy
brand that will complement
SENSUS. Although at an early stage, the Company believes that an over-the-counter device sold through retail channels can expand the overall market for its wearable pain therapy technology and accelerate growth.
Highly profitable DPNCheck sales into
Medicare Advantageaccounts increased compared to the third quarter. Although this business is seasonal, the strong margins and low operational costs make it attractive as a source of capital to help finance other opportunities.
The Company entered into a DPNCheck distribution agreement for the
Chinamarket with Omron Healthcare China. This follows a similar agreement executed earlier in the year with Omron Healthcarefor the Japanmarket. A commercial launch in Japanis expected in the second quarter.
The Scientific Advisory Boardwas strengthened with the addition of Dr. Jiro Nakamura M.D., Ph.D., of Aichi Medical University School of Medicinein Nagakute, Japan. Dr. Nakamura will be a valuable resource in the launch of DPNCheck into the Japanmarket.
- Launched branded content websites (www.SENSUSRx.com, www.DPNCheck.com) for patients and physicians using its products.
"We are encouraged by progress with both
The Company reported its financial results for the fourth quarter of
2013. Total revenues were
For the year ended
Company to Host Live Conference Call and Webcast
NeuroMetrix is a medical device company that develops and markets home use and point-of-care devices for the treatment and management of chronic pain, peripheral neuropathies, and associated neurological disorders. The Company is presently focused on diabetic neuropathies, which affect over 50% of people with diabetes. If left untreated, diabetic neuropathies trigger foot ulcers that may require amputation and cause disabling chronic pain. The annual cost of diabetic neuropathies has been estimated at $14 billion in the United States. The company markets the SENSUS™ Pain Management System for treating chronic pain, focusing on physicians managing patients with painful diabetic neuropathy. The company also markets the DPNCheck® device, which is a rapid, accurate, and quantitative point-of-care test for diabetic neuropathy. This product is used to detect diabetic neuropathy at an early stage and to guide treatment. For more information, please visit http://www.neurometrix.com.
Safe Harbor Statement
The statements contained in this press release include forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, including, without limitation, statements regarding
the company's or management's expectations relating to the adoption of
Condensed Statements of Operations
|Cost of revenues||544,830||676,522||2,194,259||3,588,806|
|Research and development||710,629||566,637||3,438,218||3,545,790|
|Sales and marketing||538,557||1,140,660||2,779,695||5,727,482|
|General and administrative||985,424||1,014,831||4,225,474||4,735,238|
|Total operating expenses||2,234,610||2,722,128||10,443,387||14,008,510|
|Loss from operations||(1,377,288||)||(1,875,498||)||(7,358,840||)||(10,022,027||)|
|Warrants offering costs||—||—||(376,306||)||—|
|Change in fair value of warrant liability||(2,327,435||)||—||(289,656||)||—|
|Net loss per common share applicable to common stockholders, basic and diluted||$||(0.87||)||$||(0.89||)||$||(3.07||)||$||(5.22||)|
Note: per share amounts have been adjusted to reflect the Company's
Condensed Balance Sheets
|Cash and cash equivalents||$||9,195,753||$||8,699,478|
|Other current assets||1,370,774||1,873,588|
|Common stock warrants||1,938,603||—|
|Total liabilities and stockholders' equity||$||10,796,763||$||10,877,447|
SVP and Chief Financial Officer
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