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Record number of SENSUS™ devices sold
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Launch of second generation SENSUS device
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Strong growth in domestic DPNCheck® tests
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Progress toward DPNCheck launch in Japan
WALTHAM, Mass.--(BUSINESS WIRE)--
NeuroMetrix, Inc. (the "Company") (Nasdaq: NURO), an innovative health
care company that develops wearable medical technology and point-of-care
tests to help patients and physicians manage chronic pain, nerve
diseases, and sleep disorders, today reported business and financial
highlights for the quarter ended March 31, 2014.
The Company operates in two primary markets - wearable medical
technology and point-of-care tests. The Company's SENSUS device is a
wearable transcutaneous electrical nerve stimulator indicated for
management of chronic pain, and is the only such device cleared by the
FDA for use during sleep. It is lightweight and can be worn during the
day while remaining active, and at night while sleeping. SENSUS is
beneficial in treating various forms of chronic pain, particularly
neuropathic pain such as painful diabetic neuropathy, which affects
about one quarter of people with diabetes. The Company's point-of-care
neuropathy test, DPNCheck, addresses an unmet medical need for accurate
and cost-effective screening, diagnosing and monitoring of peripheral
neuropathies such as diabetic peripheral neuropathy. DPNCheck has found
growing acceptance among Medicare Advantage plans where it is used in
the clinically and financially important risk adjustment process.
The Company reported recent highlights:
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A SENSUS distribution agreement was signed with DJO Global, which is a
leading manufacturer and distributor of pain therapy and
rehabilitation products. DJO Global has a national sales reach through
its domestic direct sales force.
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SENSUS device sales increased to 1,448 devices in Q1 2014 from 145
devices in Q1 2013 and 358 devices in Q4 2013.
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A second generation SENSUS device was launched with a thinner profile
and hardware improvements.
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Domestic DPNCheck sales, mostly consisting of neuropathy testing by
Medicare Advantage plans, increased to 16,050 tests in Q1 2014 from
3,900 tests in Q1 2013. This business may have a degree of
seasonality, reflecting the December 31 annual deadline for collecting
risk adjustment data.
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Substantial progress was made during Q1 towards commercial launch of
DPNCheck in Japan, including the key regulatory filing. Pending
approval timelines, a commercial launch is feasible for Q2 2014.
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Worldwide revenue from SENSUS and DPNCheck increased to $473,000 in Q1
2014 from $349,000 reported in Q1 2013, a 36% year over year increase.
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The Company's legacy ADVANCE business, which is managed for cash flow,
continued to generate contributory funding with an estimated $450,000
in gross profit in Q1 2014.
"DJO Global's sales force delivered immediate results under our new
distribution agreement," said Shai N. Gozani, M.D., Ph.D., President and
Chief Executive Officer of NeuroMetrix. "Their first quarter performance
suggests the potential for rapid SENSUS growth. In the point-of-care
testing market, Omron Healthcare is diligently laying the groundwork for
DPNCheck in Japan. This is a unique market with a combination of
physician reimbursement for nerve conduction testing and an approved
pharmacological agent for treating diabetic peripheral neuropathy. Omron
has a strong presence in the Japan market through complementary products
and broad, established distribution."
The Company reported its financial results for Q1 2014. Total revenues
were $1.33 million, slightly below $1.40 million for Q1 2013. Gross
profit was 53.8 percent of total revenues compared to 59.3 percent in Q1
2013. Operating expenses were $2.5 million compared to $3.1 million in
Q1 2013. The Company recorded a non-cash credit of $0.5 million for the
revaluation at fair value of outstanding common stock warrants. Net loss
was $1.2 million, or $0.21 per share. This compared to a net loss of
$2.3 million for Q1 2013, or $1.06 per share. NeuroMetrix reported net
cash usage of $1.6 million and ended the period with cash resources of
$7.6 million
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, April 24, 2014
at 8:00 a.m., Eastern Time. To access the call in the United States,
dial 866-515-2913 and use the confirmation code 40938233.
Internationally, the conference call may be accessed by dialing
617-399-5127 and using the same confirmation code. 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 starting two hours after the call by dialing 888-286-8010,
domestically and 617-801-6888, internationally. The confirmation code to
access the replay is 46916035. The replay will be available for two
weeks after the conference call.
About NeuroMetrix
NeuroMetrix is an innovative health-care company that develops wearable
medical technology and point-of-care tests that help patients and
physicians better manage chronic pain, nerve diseases, and sleep
disorders. The Company has a major focus 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 device for treating chronic pain, focusing on physicians
managing patients with neuropathic pain such as painful diabetic
neuropathy. The Company also markets DPNCheck, which is a rapid,
accurate, and quantitative point-of-care test for peripheral
neuropathies such as diabetic neuropathy. This product is used to detect
neuropathies 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
SENSUS and NC-stat DPNCheck, our ability to build a successful business
focused on diabetic and adjacent neuropathies, our hope of expanding our
commercial sales channels for our products and our hope of expanding
SENSUS national distribution to rapidly expand SENSUS awareness and
sales. 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, 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 March 31,
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2014
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2013
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Revenues
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$
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1,331,537
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$
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1,401,454
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Cost of revenues
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615,081
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569,784
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Gross profit
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716,456
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831,670
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Operating expenses:
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Research and development
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863,718
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1,073,419
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Sales and marketing
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446,216
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779,841
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General and administrative
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1,146,757
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1,233,594
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Total operating expenses
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2,456,691
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3,086,854
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Loss from operations
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(1,740,235
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)
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(2,255,184
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)
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Interest income
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1,036
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1,769
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Change in fair value of warrant liability
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514,600
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Net loss
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$
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(1,224,599
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)
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$
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(2,253,415
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)
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Net loss per common share data, basic and diluted
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$
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(0.21
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)
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$
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(1.06
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)
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Condensed Balance Sheets
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(Unaudited)
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March 31,
2014
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December 31,
2013
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Cash and cash equivalents
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$
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7,583,538
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$
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9,195,753
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Other current assets
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1,672,768
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1,370,774
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Noncurrent assets
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199,332
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230,236
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Total assets
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$
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9,455,638
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$
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10,796,763
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Current liabilities
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$
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1,969,812
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$
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1,647,908
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Noncurrent liabilities:
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Common stock warrants
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1,424,003
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1,938,603
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Other
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14,963
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15,277
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Stockholders' equity
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6,046,860
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7,194,975
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Total liabilities and stockholders' equity
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$
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9,455,638
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$
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10,796,763
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NeuroMetrix, Inc.
Thomas T. Higgins, 781-314-2761
SVP and
Chief Financial Officer
neurometrix.ir@neurometrix.com
Source: NeuroMetrix, Inc.
News Provided by Acquire Media
