Sunshine Heart (NSDQ:SSH) said today it will realign its strategy to focus on its recently acquired Aquadex FlexFlow system, designed to filter water and salt from patients with fluid overload due to renal failure.
The Eden Prairie, Minn.-based company acquired the system from Baxter for $5 million in August this year. It also said it will pause clinical evaluations of its neuromodulation tech and reduce cash burn to $80,000 per month in the 4th quarter of 2016.
The company is targeting $5 million in annual revenue for the Aquadex business in the 4th quarter of 2016, and $10 million in the 4th quarter of 2017, Sunshine Heart reported.
The company’s flagship product is C-pulse, a counterpulsation device that is designed to reduce the load on the left ventricle with a cuff around the aorta that beats in sync with the heart’s pulsation.
The strategy realignment for Sunshine Heart comes after it said in July it would shift from counterpulsation to neuromodulation tech.
“Aquadex was an important strategic investment, which allows Sunshine Heart to strengthen its presence in the heart failure market,” chairman & CEO John Erb said in prepared remarks. “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.”
SSH shares dropped to $0.60 apiece, down 14%, in mid-afternoon trading activity.