Loughborough, England, Feb. 16, 2021 (GLOBE NEWSWIRE) — 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.