More than a month after a clinical trial of its flagship StarFlex device failed to meet its primary endpoint, NMT Medical Inc. (NSDQ:NMTI) is still looking to find its footing.
Officials at the Boston-based company said they will continue to, “tightly manage expenses, preserve cash, evaluate financing alternatives and adjust our operating plan accordingly,” as it waits for the final results of the Closure I trial to be completed in November, according to a prepared release.
In June, shares of the company‘s stock took a nose dive on news that the trial, examining the use of its cardiac implant in treating stroke and transient ischemic attack, failed to meet its primary endpoint of demonstrable superiority to “current best medical therapy for preventing recurrent strokes and TIAs.”
Shares of NMT’s stock fell 80 percent on news of the trial failure and continue to hover well below $1.
Officials said that they’re still in discussions with the U.S. Food & Drug Administration to evaluate next steps and “plan to provide an update once an appropriate course of action has been determined,” according to a prepared release.
NMT did have some good news during the quarter as it posted a $2.6 million profit during the three month period ended June 30, reversing a $3.8 million loss from the same period last year. However, the reason for the turnaround was pre-tax gain of $6.4 million that the company said was “related to the change in fair value of the warrants issued in February 2010 as part of the Company’s $5.8 million financing.”
The company reported that sales were down 16 percent during the quarter at $2.6 million, compared to $3.1 million for the same period last year.
NMT has about $3.1 million in cash and equivalents, down significantly from the $8.9 million it had during the same period last year.