Company Update (NASDAQ:SSH): Sunshine Heart Inc Announces Strategic Realignment
Sunshine Heart, Inc. (NASDAQ:SSH) announced that it is implementing a strategic realignment of its near term strategy to fully focus the Company’s resources on its recently acquired Aquadex FlexFlow® System. The Aquadex system is indicated for temporary (up to eight hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy, and extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization.
“Aquadex was an important strategic investment, which allows Sunshine Heart to strengthen its presence in the heart failure market,” said John Erb, Sunshine’s Chairman and CEO. “We have been very pleased with the reception and enthusiasm we have received from many current and former Aquadex customers that depend on Aquapheresis® Therapy to manage fluid overload, including patients with congestive heart failure. Aquadex has shown to help reduce the length of stay while in the hospital and the number of unscheduled hospital visits in total.”
Key elements of the Company’s near-term strategy include:
- Pausing clinical evaluations of the neuromodulation technology
- Reducing cash burn from $2 million per month in the fourth quarter of 2015 to a targeted cash burn of $800,000 per month in fourth quarter of 2016
- Continuing the Company’s ongoing review of potential partnerships, strategic alliances, and the pursuit of financing alternatives.
The above measures will help the Company to attain targeted fourth quarter 2016 annualized revenue run-rate for the Aquadex business of $5 million and fourth quarter 2017 annualized revenue run-rate for the Aquadex business of $10 million.
Rx Only. All treatments must be administered by a healthcare provider, under physician prescription, both of whom having received training in extracorporeal therapies. (Original Source)
Shares of Sunshine Heart are currently trading at $0.708, up $0.008 or 1.14%. SSH has a 1-year high of $2.73 and a 1-year low of $0.40. The stock’s 50-day moving average is $0.79 and its 200-day moving average is $0.75.
Sunshine Heart, Inc. engages in the provision of cardiac and coronary disease products. Its activities include development, manufacture and commercialization of medical devices for the treatment of heart failures and diseases. It markets its products under the C-Pulse System brand.