TIRAT CARMEL, ISRAEL -- (MARKET WIRE) -- 09/07/11 -- D. Medical Industries Ltd. (NASDAQ: DMED)(TASE: DMED) ("D. Medical" or the "Company"), a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery, announced today that it has initiated a strategic restructuring, including a contemplated staff reduction, designed to improve the Company's financial performance in the short- and medium-terms.
D. Medical is in the early stages of executing its low risk and low cost strategy of introducing and promoting the "Spring" brand name in the United States and Canada and Europe - initially via the commercial roll out of its Spring™ Universal Infusion Sets. At the same time, the Company continues to work toward completing the preparations needed to begin implementing its commercial strategy for the developing world.
"Our goal is to generate meaningful revenues and reach positive margins as quickly as possible. Based on the early interest shown by patients, doctors and Diabetes educators in our breakthrough Spring™ Universal Infusion Set product, we believe that we are on the right track. Indeed, in order to ensure that we will continue to have sufficient supply to fulfill anticipated demand, we are now working towards quadrupling capacity at UPG's site in China by the end of the year. Nevertheless, in the current stock market environment, we need to be proactive to help ensure that we have sufficient capital to continue to execute on our full business plan. We have taken this step to reduce spending and accelerate our path to cash-flow break even," said Efri Argaman, D. Medical's Chief Executive Officer.
About D. Medical
D. Medical is a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery. D. Medical has developed durable and semi-disposable insulin pumps, which continuously infuse insulin into a patient's body, using its proprietary spring-based delivery technology. D. Medical believes that its spring-based delivery mechanism is cost-effective compared to the motor and gear train mechanisms that drive competitive insulin pumps and also allows it to incorporate certain advantageous functions and design features in its insulin pumps. D. Medical has also developed an infusion set for insulin pumps and is focusing its research and development efforts on the development of next generation insulin pumps and a device that will combine a continuous glucose monitoring system and an insulin pump on the same patch. For more information, please visit http://www.dmedicalindustries.com (corporate) and http://www.springnow.com (healthcare professionals, patients and care givers).
This press release contains forward-looking statements (as defined by the Israeli Securities Law, 1968, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties. These statements include, forecasts, goals, uncertainties and assumptions and relate, inter alia, to D. Medical's future expectations in connection with its level of sales and cost of sales, manufacturing volumes, the cost-effectiveness of its spring-based design, target markets, regulatory approvals and timing of markets penetration. The forward-looking statements are based on D. Medical's current expectations and beliefs which are based on, among other things, its analysis of publicly available information and market research reports. All forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact of general economic conditions, competitive products, product demand, product performance, the performance of D. Medical's contract manufacturer and distributors, regulatory trends and approvals and healthcare reform legislation. If one or more of these risks and/or uncertainties materialize, or if the underlying assumptions prove to be incorrect, D. Medical's actual results, performance or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements or results which are based upon such assumptions. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or of any of them will transpire or occur, what impact it will have on D. Medical's results of operations or financial condition. D. Medicals does not undertake to update any forward-looking statements.
Source: D. Medical Industries Ltd.