Nerve testing devices maker NeuroMetrix (NURO) has recently established a scientific advisory board for its new diabetic peripheral neuropathy (“DPN”) test. The board consists of eminent international experts who will work closely with the company for improving detection, monitoring and management of DPN. Many of these experts are authors of widely followed clinical guidelines, including those from the American Diabetes Association (“ADA”).
The DPN test, dubbed NC-stat SL, is a modified version of NeuroMetrix’s flagship NC-stat device for nerve conduction study (“NCS”). It has been geared for rapid, accurate and cost-effective measurement of DPN at the point-of-care. NC-stat SL measures nerve conduction in the sural nerve which is located in the lower leg.
DPN, a common and serious complication of diabetes, affects roughly 60%-70% of diabetics and may lead to foot ulcers and amputations. Currently, there is a lack of standardized test for DPN at the point-of-care, triggering a large unmet need. NeuroMetrix is well placed to address this need with NC-stat SL.
NeuroMetrix plans to introduce NC-stat SL at the ADA meeting June 2011 followed by a commercial rollout in third-quarter 2011. The newly formed advisory board will aid the company’s efforts to bring this novel test into the market.
NeuroMetrix focuses on the development and marketing of devices that help physicians detect and treat diseases and peripheral nerve injuries, and offer regional anesthesia and pain control. The company’s principal products are ADVANCE and NC-stat devices for NCS. NeuroMetrix competes with Medtronic (MDT) among others.
NCS is considered as gold standard for diagnosis of DPN. However, higher cost and limited access have prevented its widespread adoption. Studies conducted using ADVANCE and NC-stat declined 12.5% sequentially in the most recently reported quarter.
NeuroMetrix, in January 2011, modified its operational focus in favor of diabetes, in particular the diagnosis and monitoring of DPN. Moreover, as part of its new strategies, the company stated that it will maintain its ongoing sustenance for its neurodiagnostic business, which has languished in recent times due to reimbursement policies.
The company has restructured this business to provide product support for its live installed base, reduce costs and optimize cash flow. The restructuring, which involve a 27% workforce reduction and realignment of responsibilities, will cost NeuroMetrix roughly $2.3 million.
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