A 1-for-6 reverse stock split worked out for NeuroMetrix Inc. (NSDQ:NUROD), which said today that it’s back in the good graces of the NASDAQ exchange, and announced a new product launch for the diabetes market.
The Waltham, Mass.-based company, a former high flier on Wall Street, has fallen back to earth after hitting a high-water mark of $39.35 per share in August 2006.
When share prices fell below $1 apiece for 30 consecutive days last year, the stock exchange warned of a potential delisting if share prices stayed below the $1 threshold.
That prompted NeuroMetrix, which makes equipment to test nerve conduction, to ask its shareholders to approve the reverse split back in April. Earlier this month the company pulled the trigger on the split and its share price responded. NURO shares have bounced between $1.71 and $2.30 since the Sept. 2 split and were trading at $1.72 as of about 10:50 today, down 2.8 percent on the day.
NeuroMetrix also said it shipped the first of its new product line aimed at the diabetes market. Its NC-stat DPNCheck point-of-care test is designed to evaluate systemic neuropathies such as diabetic peripheral neuropathy.
“NeuroMetrix believes that the NC-stat DPNCheck test may address the unmet medical need for better, cost-effective approaches to detecting and monitoring DPN,” according to a press release. “Commercial shipment represents the culmination, on schedule, of a year-long product development effort to modify the company’s NC-stat technology to the focused evaluation of the sural nerve. In tandem, the development effort resulted in substantial cost reductions that enable an innovative approach to commercial deployment of this important advance in diabetes care.”
NeuroMetrix is also co-developing an over-the-counter version of the NC-Stat test for DPN, along with Japan’s Nipro Corp. (TYO:8086).
Early this year the company said it planned to stop supporting its workhorse NC-stat device for neurodiagnostics and pursue its use for diabetic indications instead. The general purpose NC-stat suffered a setback it never got over after the Centers for Medicare and Medicaid Services cut reimbursement rates for procedures using the device.