Nemaura Medical Issues Letter to Shareholders Following April 28 Shareholder Update Call
Loughborough, England, April 29, 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 issues a Letter To Shareholders from CEO Dr. Faz Chowdhury summarizing its Shareholder Update call held yesterday, April 28, 2021. This letter is to help clarify the content from the call in which there may have been intermittent audio issues.
A replay of the webcast of the call can be accessed via https://services.choruscall.com/mediaframe/webcast.html?webcastid=csR36vjo.
A telephonic replay of the call will be available through May 6, 2021 and may be accessed by calling 1-877-344-7529 (U.S. domestic) or 1-412-317-0088 (international) and using access code 10154964.
To our Valued Shareholders:
Below please find the content of our Shareholder Update Conference Call held April 28, 2021 at 4:30PM ET. We provide this content to provide clarity for those who may have experienced intermittent audio issues.
Following our December launch of our BEATdiabetes program via our BEATdiabetes website, Nemaura has been in a constant state of corporate growth, preparing for new product launches, shoring up our management and staff and preparing the way both for our recently announced product launch in Europe as well as for the full product launch in the United States.
As we are on the precipice of multiple game-changing milestones, I thought that this call would provide us an opportunity to take a closer look at all we’ve accomplished in the last nearly six months and discuss the path forward.
I’d like to begin with our December launch in the US of the BEATdiabetes program via the BEATdiabetes website and smartphone app. Keep in mind the BEATdiabetes program is a clinically validated program that uses proven methodologies to help people better manage their health habits including diet, exercise and other lifestyle elements that either increase the risk of or exacerbate Type 2 diabetes. The use of our program, which includes an AI-based interface that interacts personally with users, has been shown to help them better manage weight and other risk factors to either improve or prevent or even reverse Type 2 diabetes.
Following our December launch, we’ve already commenced a pilot program which will comprise approximately 200 users in the US, and we expect multiple additional pilots with various parties over the course of the year.
In the UK our licensee reports that its soft launch has led to plans to hire 10 full-time registered general nurses to help facilitate the one-on-one counseling aspect of the program, which occurs when users pair the sugarBEAT sensor with the app, providing real-time data. We are already hearing anecdotal reports of significant improvements of those that have been using the sugarBEAT sensor.
As we begin to proliferate the program in the US and via our licensee in the UK, the need to increase our production of sugarBEAT sensors and devices has increased, and we have begun to ramp up production to meet what we believe will be a significantly increased demand in the coming months.
Importantly, as a result of these successful outcomes both in the UK and the U.S., I’m very happy and proud to report that we now expect to recognize revenue in relation to this in Qtr 2 of the current financial year. This will mark a significant milestone for us as a business as we become revenue generating.
The initial success of these programs has led us to look at the strategic growth of the business. First, as we are preparing to reach a global audience, we are facing the need to expand our management team and we have welcomed a number of top talent to join our management team. These include Thomas Mortensen, our Head of EU Commercial Operations and Marketing, who comes from Roche after multiple years at other key medical device manufacturers; Jay Warner who heads our U.S. Marketing Operations after many years associated with Eli Lilly & Co.; Alistair Longmuir, our Global Head of Product Development and Manufacturing Strategy, with the pedigree of years at J&J and Lifescan; as well as Samantha Sanders, who designed and developed digital programs for AbbVie.
From here we expect to continue to make hires to round out our management team while also focusing on building up our Quality team to ensure that all of our products meet our own exacting standards as we embark on the previously mentioned production ramp up.
With all of the activity I’ve already mentioned, I think it worthwhile to remind you that we have achieved a great deal in a short amount of time while maintaining very strong fiscal control over costs and closely managing our balance sheet and cash position. Whilst we have engaged in fundraising over the last year, the bulk of it has been non-dilutive and this has resulted with us holding cash on balance sheet for the financial year ended March 31st, 2021 of approximately $31.8m, obviously this is still subject to audit. The strong focus on cost and cash management will continue to be a focus for the business, and our recent cash burn rate has been less than $2m per quarter though we expect this to increase slightly as we ramp up operations.
It is worth mentioning that during the height of the COVID-19 pandemic we observed an extremely favorable market environment that has since slowed. Whilst many other companies are experiencing new challenges, Nemaura has not participated in any dilutive funding, preserving shareholder value.
Our strong cash position also allowed us to continue to develop our product offerings to go beyond the diabetes space and into related areas, including metabolic health, with some strategic adjustments to our current technology. We have already made considerable progress in developing our technology for this application, and we anticipate providing updates to our shareholders on this progress soon.
Finally, prior to addressing some of our frequently asked questions, I’d like to report that all of our efforts have not gone unnoticed. In a recent issue of UK-based publication, Business Leader, Nemaura was named among the 32 top health tech innovators in the UK, out of over 4,000 companies. We are honored to be named among these truly remarkable companies, and will continue to strive to provide cutting edge, non-invasive technologies to improve and save lives.
We are very proud to have made such significant progress and are looking forward to continuing to provide updates on future milestones, both in product development, distribution and meeting our financial goals, all in the service of providing optimal shareholder value. In the meantime, I thank you for your continued support.
Dr. Faz Chowdhury
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 has been launched in the U.S. as a general wellness product as part of its BEAT®diabetes program.
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.