KORU Medical Systems Reports Preliminary Full Year 2020 Results; Announces CEO Transition
January 25 2021 - 4:01PM
Business Wire
Repro Med Systems, Inc. dba KORU Medical Systems (NASDAQ:
KRMD) (“KORU Medical” or the “Company”) a leading medical
technology company focused on the development, manufacturing, and
commercialization of innovative and easy-to-use specialty infusion
solutions that improve quality of life for patients, today reported
preliminary financial results for the full year ended December 31,
2020. The Company also announced that seasoned home infusion
executive and KORU Medical Board member, Jim Beck, has been
appointed Interim Chief Executive Officer, effective immediately.
Don Pettigrew has resigned as President and CEO, and the Board of
Directors has retained a leading executive search firm to assist in
the search process to identify a replacement CEO.
Preliminary revenue for full year 2020 is expected to be
approximately $24.0 million, an increase of 3.4% compared with
$23.2 million in 2019.
Preliminary cash, cash equivalents and marketable securities are
expected to be approximately $27.3 million as of December 31, 2020,
up from $5.9 million on December 31, 2019.
Factors that impacted 2020 preliminary results included:
- Significant fluctuations in demand resulting from inventory
purchasing by several large customers throughout the year;
- Slower growth in net revenue as a result of strengthening our
contractual position with large customers;
- Less than expected international sales and clinical trial
partnerships in the second half of 2020; and
- A slowdown in new patient starts due to the effect of state and
local guidelines that prevented many individuals from visiting
their healthcare professionals in 2020.
“While we recorded revenue growth for the full year 2020,
inventory fluctuations and slowdowns in international business,
clinical trial activity, and new patient starts impeded our
growth,” said Jim Beck, Interim Chief Executive Officer. “Although
COVID-19 related uncertainties remain, we are confident that the
underlying fundamentals of our core business are stable and that we
are well-positioned to take advantage of the continued shift from
intravenous to subcutaneous infusions for life-saving
therapies.”
Jim Beck has more than 30 years of healthcare services and
distribution general management experience. Jim most recently
served as Executive Chairman of Medical Specialties Distributors
(acquired by McKesson), a leading service solution provider serving
the home infusion, home medical equipment, and oncology markets,
and served as its President and Chief Executive Officer for over
nine years. During Jim’s tenure, MSD was KORU’s largest
distributor. Prior to joining MSD, Jim held various executive and
management positions with leading healthcare companies such as
American Hospital Supply/Baxter Healthcare, AMSCO International,
Spectrum Healthcare, and SHPS Health Management Solutions.
“On behalf of the entire Board of Directors, I would like to
thank Don for his leadership throughout his tenure at KORU Medical.
By solidifying our core, refreshing the brand, and strengthening
our balance sheet, today the Company stands well positioned to
enter our next phase of growth,” said John Fletcher, Chairman of
the KORU Medical Board of Directors. “KORU is now in the position
to identify a CEO who will lead the expansion of KORU’s drug
delivery platform into new products, applications, and geographic
markets.”
“We are confident that Jim Beck’s experience and track record
provide KORU Medical with an excellent interim CEO while the Board
works to choose his successor.”
The preliminary financial information presented in this press
release is based on KORU Medical’s current expectations and may be
adjusted as a result of, among other things, the completion of
customary annual audit procedures. KORU Medical expects to report
fourth quarter and full year 2020 financial results in March
2021.
About KORU Medical Systems
KORU Medical Systems develops, manufactures, and commercializes
innovative and easy-to-use specialty infusion solutions that
improve quality of life for patients around the world. The FREEDOM
Syringe Infusion System currently includes the FREEDOM60® and
FreedomEdge® Syringe Infusion Drivers, Precision Flow Rate Tubing™
and HIgH-Flo Subcutaneous Safety Needle Sets™. These devices are
used for infusions administered in the home and alternate care
settings. For more information, please visit
www.korumedical.com.
Forward-looking
Statements
This press release contains forward-looking statements that
involve risks and uncertainties. Forward-looking statements can be
identified by words such as “preliminary,” “confident” and
“expected.” Actual results may differ materially from the results
predicted and reported results should not be considered as an
indication of future performance. The potential risks and
uncertainties that could cause actual results to differ from the
results predicted include, among others, changes to preliminary
results arising from audit procedures, uncertainties associated
with COVID-19, future operating results, availability of investment
opportunities, market fluctuations, and those risks and
uncertainties included under the captions “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2019,
and our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2020, which are on file with the SEC and are
available on our website at www.korumedical.com/investors and on
the SEC website at www.sec.gov. All information provided in this
release and in the attachments is as of January 25, 2021. Undue
reliance should not be placed on the forward-looking statements in
this press release, which are based on information available to us
on the date hereof. We undertake no duty to update this information
unless required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210125005808/en/
Investor Contact: Greg Chodaczek 347-620-7010
investors@korumedical.com
KORU Medical Systems (NASDAQ:KRMD)
Historical Stock Chart
From Aug 2024 to Sep 2024
KORU Medical Systems (NASDAQ:KRMD)
Historical Stock Chart
From Sep 2023 to Sep 2024