Nemaura Medical Reports Financial Results for Third Quarter of Fiscal Year 2021 and Provides Corporate Update
February 16 2021 - 8:30AM
Nemaura Medical Inc. (NASDAQ: NMRD) (“Nemaura” or the “Company”), a
medical technology company focused on developing and
commercializing non-invasive wearable diagnostic devices and
supporting personalized lifestyle coaching programs, today
announces financial results for its fiscal third quarter ending
December 31, 2020 and provides a corporate update.
Recent and Third Quarter Highlights
include:
- The Company continues to build the management team and
strengthen resources for commercial revenue
generation.
- Launched
http://www.beatdiabetes.life in the U.S. which offers a program
designed to help prevent, manage, or reverse Type 2 diabetes that
combines a world class-diabetes management program originally
developed at the Joslin Institute with the company’s proBEAT
glucose monitoring sensor to help educate, inform, and guide users
towards better management of their blood glucose levels. The
program is initially being marketed to corporate payers and
healthcare insurers in the U.S.
- Raised $20 million in non-dilutive funding and, with a
quarterly burn rate of approximately $1.5m, maintains substantial
runway and leverage to accelerate its commercial
growth.
- Continues to receive very positive feedback from early
sugarBEAT users in the UK.
- Made further progress on its commercial manufacture scale-up
processes to support product sales in key global territories.
- Made substantial progress towards its repurposed application
for continuous temperature monitoring, with the device now ready
for testing and submission for regulatory approvals.
Third Quarter 2020 Financial
Results
Net loss for the third quarter of fiscal year
2021 was $1,446,697, as compared to a net loss of $445,007 during
the same period in the prior year. The increased net loss was
driven by the interest expense for the accretion of debt discount
on the Secured Loan Note that the Company entered into on April 15,
2020 as well as the absence of a $614,362 income tax benefit
recognized in the previous year.
Research and development expenses were $486,957
and $516,672 for the three-month periods ended December 31,
2020 and 2019, respectively. This continues to be largely composed
of expenditure on wages and sub-contractor activities incurred in
finalizing the product design for the sugarBEAT® device
in order to enable scaling of production capacity. The decrease in
expenses in the quarter is driven by the reduction in research and
development spend as the sugarBEAT® product nears commercial
launch. Moving forward, the Company anticipates that these cost
reductions will continue but will re-balance across general and
administrative expenses as the Company moves into commercial
launch.
General and administrative expenses were
$581,520 during the three-month period ended December 31, 2020, as
compared to $542,697 for the three-month period ended December 31,
2019. The cost drivers in this area remain consistent with
previous quarters and are largely representative of fees for legal,
professional, consultancy, audit services, investor relations,
insurance, and wages. The year-over-year increase in the quarter
was driven by an increase in wages for the development of the
functions required to support commercial product launch; as noted
above, the Company expects the increase in costs in the area to
continue moving forward to enhance and support commercialization
activities.
Cash as of December 31, 2020 was $14,959,785 as
compared to $1,067,663 in the same period of 2019, and following
the non-dilutive fund raise that took place on February 8th, 2021,
the Company has a cash balance of $33m as of February 15th,
2021.
About Nemaura Medical Inc.
Nemaura Medical Inc. is a medical technology
company developing and commercializing non-invasive wearable
diagnostic devices. The company is currently commercializing
sugarBEAT® and proBEAT™. sugarBEAT®, a CE mark approved Class IIb
medical device, is a non-invasive and flexible continuous glucose
monitor (CGM) providing actionable insights derived from real time
glucose measurements and daily glucose trend data, which may help
people with diabetes and pre-diabetes to better manage, reverse,
and prevent the onset of diabetes. Nemaura has submitted a PMA
(Premarket Approval Application) for sugarBEAT® to the U.S. FDA.
proBEAT™ combines non-invasive glucose data processed using
artificial intelligence and a digital healthcare subscription
service and is expected to be launched in the U.S. as a general
wellness product.
The Company sits at the intersection of the
global Type 2 diabetes market that is expected to reach nearly $59
billion by 2025, the $50+ billion pre-diabetic market, and the
wearable health-tech sector for weight loss and wellness
applications that is estimated to reach $60 billion by 2023.
For more information, please visit
www.NemauraMedical.com.
Cautionary Statement Regarding
Forward-Looking Statements:
The statements in this press release that are
not historical facts may constitute forward-looking statements that
are based on current expectations and are subject to risks and
uncertainties that could cause actual future results to differ
materially from those expressed or implied by such statements.
Those risks and uncertainties include, but are not limited to, the
launch of proBEAT™ in the US, risks related to regulatory status
and the failure of future development and preliminary marketing
efforts, Nemaura’s ability to secure additional commercial
partnering arrangements, risks and uncertainties relating to
Nemaura and its partners’ ability to develop, market and sell
proBEAT™, the availability of substantial additional equity or debt
capital to support its research, development and product
commercialization activities, and the success of its research,
development, regulatory approval, marketing and distribution plans
and strategies, including those plans and strategies related to
both proBEAT™ digital health, and sugarBEAT®. There can be no
assurance that the company will be able to reach a part of or any
of the global market for CGM with its products/services. The FDA
reserves the right to re-evaluate their decision that proBEAT™
qualifies as a general wellness product should it become aware of
any issues such as skin irritation or other adverse events from the
device, as well as any misuse impacting patient safety, and any
other reason as the FDA may see fit at its discretion to determine
the product does not fit the definition of a general wellness
product. These and other risks and uncertainties are identified and
described in more detail in Nemaura’s filings with the United
States Securities and Exchange Commission, including, without
limitation, its Annual Report on Form 10-K for the most recently
completed fiscal year, its Quarterly Reports on Form 10-Q, and its
Current Reports on Form 8-K. Nemaura undertakes no obligation to
publicly update or revise any forward-looking statements.
Contact:
Jules Abraham CORE IR 917-885-7378 julesa@coreir.com
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