The Germantown, Md.-based implantable continuous glucose monitor maker also announced a deal with Ascensia Diabetes Care for global commercialization and distribution with concurrent financing worth up to $50 million.
Senseonics posted losses of -$7.5 million, or -3¢ per share, on sales of $261,000 for the three months ended June 30, 2020, for a -75.8% bottom-line slide on a sales decline of -94.3%.
Adjusted to exclude one-time items, earnings per share were breakeven at zero, 9¢ ahead of Wall Street, where analysts were looking for sales of $1.43 million.
“Our second quarter results demonstrate significant expense and cash burn reductions resulting from our suspended commercial operations and other cost reduction initiatives,” Senseonics president & CEO Tim Goodnow said in a news release. “Anticipated revenue headwinds were caused by our reduced commercial operations and early in the quarter impacts of the COVID-19 pandemic. Moving forward we are in a stronger position to help patients with diabetes.”
Senseonics did not offer financial guidance for the full year 2020.
SENS shares were up 5.2% at 54¢ per share in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was level at 0% change since the markets opened today.
Under the new commercialization and distribution agreement, Ascensia has been appointed as the exclusive global distribution partner for Senseonics’ CGM systems, including Eversense, Eversense XL and future products in the pipeline.
In the U.S., Ascensia will initiate marketing activities for Eversense in the coming months and will take over full responsibility in the first quarter of 2021, while, in Europe, the company will begin commercialization in select countries once Senseonics’ existing distribution partnerships have concluded.
Ascensia’s exclusive distribution rights will last through 2025, while its parent company, PHC Holdings, invested an initial $35 million into Senseonics through convertible debt securities, with a further $15 million slated to come in exchange for convertible preferred equity upon FDA approval for the 180-day Eversense product.
“Our collaboration with Ascensia represents a mutual commitment to penetrating the CGM market with Eversense and the next phase of growth for Senseonics,” Goodnow said. “In addition, building upon our success with the MACs, CMS has included a national payment amount for implantable CGMs in the proposed 2021 physician fee schedule as a medical benefit, which could lead to access to Eversense for millions of Medicare recipients. We are very excited about the opportunity ahead of us.”