The company announced a cost reduction program that promises a lower break-even point of approximately $40 million, which it said will improve cash flow and allow for “further investment in new technology and new markets.”
The program will come with cuts to non-R&D staff, as well as a reduction in 3rd party services and “a more capital efficient facility location,” the company said.
“I am pleased at the progress of our vascular business and our continued improvements in financial stewardship. We are encouraged by the strength of our 4th quarter system pipeline and have received 3 system orders in October 2015. We are encouraged that activity-to-date in the 4th quarter and we believe our robust pipeline positions us to ship more systems in the second half of 2015 as compared to the 1st half of 2015. I believe the capital environment within our pipeline is improving,” CEO Cary Vance said in a press release.
Hansen Medical reported losses of $10.2 million, or 54¢ per share, on sales of $3.2 million for the 3 months ended September 30. That amounts to a 34.4% drop in losses as sales shrunk 17.9% compared with the same period in 2014.
Adjusted to exclude 1-time items, losses per share were 48¢, well above Wall Street’s expectations of 80¢ per share. The company’s revenue slid in well below the Street’s expectations of $4.2 million.
Shares have drooped 4.2% to $3.65 as of 3:45 p.m. EST.
“The clinical data has begun to accumulate, supporting the utilization of the Magellan System, for a vast number of endovascular procedures. Through the 3rd quarter of 2015, there have been 369 procedures performed worldwide to date. We will continue to maintain a strong R&D focus to ensure our product offerings match the needs of this growing market,” CEO Vance said in prepared remarks.
In October, Hansen Medical said it inked an agreement with AB Medica Sagl to operate as the exclusive distributor of its Magellan robotic system in Switzerland.
The Magellan system drives Magellan robotic catheters and guide wires in minimally-invasive endovascular procedures and can be controlled remotely to allow for the use of interventional fluoroscopy during the procedures without risking radiation exposure, the company said.