WOBURN, Mass. - NeuroMetrix, Inc. (NASDAQ:NURO), a medical device company specializing in non-invasive treatments for neurological disorders and pain syndromes, announced today that it is reviewing strategic options to enhance the growth of its Quell® neuromodulation and DPNCheck® neurodiagnostic businesses. The aim is to optimize shareholder value through potential changes in marketing strategies, acquisitions, asset sales, or other strategic transactions.
The company has retained Ladenburg Thalmann & Co. to assist in the strategic review process. NeuroMetrix has clarified that during this period of exploration, its commercial operations will remain unchanged. There is no guaranteed outcome from this review, nor has the company established a deadline for the evaluation's completion. Future developments may only be disclosed if deemed appropriate or necessary.
Shai N. Gozani, M.D., Ph.D., CEO of NeuroMetrix, expressed confidence in the growth potential of the company's Quell technology, emphasizing both vertical and horizontal expansion opportunities. He also addressed the review of the DPNCheck business in light of recent Medicare Advantage risk adjustment changes by CMS. While the company currently has sufficient funding for near-term initiatives, Gozani stressed the importance of managing liquid resources, optimizing cash flow, and exploring funding opportunities to support long-term growth.
NeuroMetrix's product line includes Quell, a wearable neuromodulation platform, and DPNCheck, a point-of-care test for peripheral neuropathy.
The information regarding this announcement is based on a press release statement from NeuroMetrix, Inc.
InvestingPro Insights
As NeuroMetrix, Inc. (NASDAQ:NURO) embarks on a strategic review to enhance its growth and optimize shareholder value, it's crucial to consider the financial metrics and market sentiment that can influence the company's trajectory. According to real-time data from InvestingPro, NeuroMetrix holds a market cap of 3.47M USD, which is reflective of its current market valuation. Despite a challenging fiscal period with a revenue decline of -21.85% over the last twelve months as of Q3 2023, the company has managed to maintain a gross profit margin of 67.32% in the same timeframe.
InvestingPro Tips suggest that while NeuroMetrix has been navigating a volatile market with significant price fluctuations over various time frames, including a -75.92% one-year price total return, the company holds more cash than debt, which is a positive sign for its financial health. Moreover, analysts predict that the company will be profitable this year, indicating potential for a turnaround in its performance. Additionally, with a fair value estimation of 5.6 USD by InvestingPro, the current price of 3.39 USD may present an opportunity for investors.
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