NeuroMetrix, Inc. (the "Company") (Nasdaq: NURO), a medical device company focused on the treatment of the neurological complications of diabetes, today reported business and financial highlights for the second quarter ended June 30, 2013.
“We are building a broad commercial foundation for SENSUS based on national distribution and widespread product awareness”
The Company is in the process of building a broad national distributional channel for its SENSUS Pain Management System, which is a novel transcutaneous electrical nerve stimulator intended for treating chronic pain. SENSUS is a convenient and wearable non-invasive device that offers physicians and their patients a non-narcotic pain relief option as a complement to medications. The device is lightweight and can be worn during the day while remaining active, or at night while sleeping. The Company believes it is the only transcutaneous electrical nerve stimulator designed specifically for people with diabetes that suffer from chronic pain. The most common cause of such pain is painful diabetic neuropathy (PDN), which affects up to 5 million people in the U.S. alone. The Company's business strategy is to develop widespread distribution in the United States through multiple sales channels while expanding the market through complementary clinical indications.
Highlights for the second quarter include:
SENSUS is currently carried by about 15 regional durable medical equipment suppliers. The Company shipped approximately 210 devices during the second quarter and approximately 350 devices year-to-date.
Pilot programs to evaluate market interest are scheduled or under discussion with several large national distribution partners. The Company expects pilot programs to start in the third quarter of 2013.
SENSUS became the first transcutaneous electrical nerve stimulator to receive 510(k) clearance from the U.S. Food and Drug Administration (FDA) for use during sleep. This expanded regulatory indication allows SENSUS to be marketed for overnight use.
A $5 million equity offering was completed to secure additional resources for SENSUS commercialization, further product development and for working capital purposes.
"We are building a broad commercial foundation for SENSUS based on national distribution and widespread product awareness," said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "This is a deliberate process that will take time and require patience. We are encouraged by our early success, as we have received interest from important potential distribution partners and are working with them to develop and launch pilot partnerships during the second half of the year. These pilot programs will take time; however, adoption by one or more of these national partners has the potential to rapidly expand SENSUS awareness and sales. To support this effort, we have shifted sales and marketing resources to SENSUS that had previously been dedicated to our diagnostic device for diabetic peripheral neuropathy, NC-stat® DPNCheck®."
The Company reported its financial results for the second quarter of 2013. Total revenues were $1.2 million compared with $2.2 million for the second quarter of 2012. Gross profit for the second quarter of 2013 was 56.8 percent of total revenues compared to 55.4 percent of total revenues in the second quarter of 2012. Operating expenses for the second quarter of 2013 were $2.8 million compared to $4.0 million in the second quarter of 2012. The Company recognized other income of $1.2 million in the second quarter of 2013 from the change in value of the warrants issued in the equity offering during the second quarter of 2013. Net loss for the second quarter of 2013 was $1.3 million, or $0.92 per share compared to a net loss of $2.8 million for the second quarter of 2012, or $1.32 per share. NeuroMetrix reported net cash usage of $1.9 million in the second quarter of 2013 and ended the period with cash resources of $9.6 million. Per share amounts have been adjusted for the effects of the February 2013 reverse stock split.
For the six month period ended June 30, 2013, the Company reported revenues of $2.6 million and a net loss of $3.6 million, or $1.97 per share. In the comparable six month period ended June 30, 2012, the Company recorded revenues of $4.3 million and a net loss of $5.5 million, or $3.17 per share.