We recently covered the CE mark approval of Israeli company D. Medical’s tiny insulin pump, here.
Now the company has announced that it has initiated a strategic restructuring designed to focus its business on “maximising and realising the value of the Company’s novel technology and intellectual property” by licensing and/or selling such technology (or part of it) to third parties. In parallel, the Company will continue to pursue new OEM and high volume sales opportunities.
Medical device company D. Medical holds, through its subsidiaries, a portfolio of products and intellectual property in the area of insulin and drug delivery. The company developed durable and semi-disposable insulin pumps, which continuously infuse insulin into a patient’s body, using its proprietary spring-based delivery technology, which all sounds very promising and was reported on our own pages as recently as early January when it received its CE mark.
D.Medical’s spring-based delivery mechanism appears to offer a cost-effective solution, when compared to the motor and gear train mechanisms that drive competitive insulin pumps and the resulting product is able to be made smaller, lighter, quieter than competitive offerings as well as being durable. It looks however as though the money’s running out before commercial ambitions can be realised, leading to the need for this restructuring.
According to a company press release, issued on GlobeNewswire via COMTEX, the restructuring is designed to significantly reduce the Company’s ongoing operating expenses and is effective immediately. It includes a contemplated staff reduction and a voluntary reduction in the compensation of, among others, the chairman of the board, the chief executive officer, chief financial officer and the chief operating officer. The company is also contemplating a possible reduction in the size of its Board of Directors.
The Company says it and its subsidiaries will continue to support its current customer base and will continue to employ its management and customer support personnel.
“The strategic restructuring announced today is a direct result of the challenging market conditions the Company is facing. The Company and its subsidiaries have successfully accomplished a number of milestones. For example, the Company’s innovative Spring Zone insulin pump has achieved a CE Mark and its breakthrough Spring(TM) Universal Infusion Set has obtained FDA clearance, CE Mark and a Health Canada marketing license. Thus far, the industry has reacted very positively to our products. Patients, physicians and diabetes educators have shown particular early interest in Spring(TM) Universal, as demonstrated by the fact that approximately 100,000 units of this product have already been supplied to our customers. Nevertheless, we believe that under the current and foreseen market conditions, this reorganization is in the best interest of the Company and its shareholders. Accordingly, we plan to focus on marketing the Company’s technology in a way that will maximize its value,” said Efri Argaman, D. Medical’s Chief Executive Officer.
Note: On March 13th, D.Medical, which is listed on US NASDAQ Stock Market received a letter indicating that based on the Company’s closing bid price for the last thirty consecutive business days, the Company was not in compliance with the $1.00 minimum bid price requirement as set forth in Nasdaq Listing Rules. The Company now was given a period of one hundred and eighty calendar days from such letter, or until September 10, 2012, to regain compliance. At the time D.Medical stated that it was looking at its options with respect to regaining such compliance.
Source: D. Medical, GlobeNewswire via COMTEX