Acutus Medical Inc AFIB announced a realignment of resources and corporate restructuring to become a contract manufacturing business that could generate positive cash flow over the next several years.
The company will wind down the electrophysiology (EP) mapping and ablation business, including the AcQMap Mapping System, the AcQMap 3D Mapping Catheter, the AcQBlate Force-Sensing Ablation Catheter, the AcGuide Max 2.0 steerable sheath, and associated accessories.
The company will support AcQMap procedures with a small group of therapy managers through November 30, 2023.
Acutus Medical will solely support the manufacturing and distribution of Medtronic's left-heart access products and capture the value associated with potential earnout payments from Medtronic Plc MDT.
The corporate restructuring will reduce the company's workforce by approximately 65% and is expected to be completed in the first quarter of 2024.
Going forward, the company's exclusive sources of revenue will come from the sale of left-heart access products at transfer prices specified in Acutus' existing distribution agreement with Medtronic and any fee-bearing transition services.
As of September 30, 2023, the company had $45.5 million in cash, cash equivalents, marketable securities, and restricted cash.
Acutus Medical reported a Q3 EPS loss of $(0.52), down from $(0.70) a year ago and beating the consensus of $(0.61).
The company reported Q3 sales of $5.24 million, up 44% Y/Y, beating the consensus of $4.83 million.
Price Action: AFIB shares are up 6.85% at $0.50 during the premarket session on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
