NeoDynamics: Focus on bringing down burn rate
NeoDynamics: Focus on bringing down burn rate
Swedish based biopsy system equipment manufacturer NeoDynamics announced plans to carry out a cost reduction plan as a consequence of current conditions in financial markets that makes it very difficult to raise capital for biotech and life science companies. Details of the plan is not yet available, but the company will cut staff in the near future to ensure a better balance between costs and the required sales organization in those markets where orders are starting to emerge.
From HCA’s perspective, a cost reduction plan seems appropriate, and the timing is right since NeoDynamics is at an important juncture in its commercialization process as the company is starting to get orders for its patented and cutting-edge pulse technology-based breast biopsy system NeoNavia. Therefore, NeoDynamics needs to stay financially afloat so the company can still be present in relevant markets and receive orders to generate vital cash flows to strengthen its liquidity position. Also, cost cutting initiatives are seen everywhere in the biotech and emerging life-science industry due to the difficult funding situation, so it should come as no surprise that NeoDynamics embarks on this option as well. But contrary to many other in the industry, NeoDynamica has the advantages that the company actually has an approved product that are currently being sold in the marketplace right now.
Disclaimer: HC Andersen Capital receives payment from NeoDynamics for a Digital IR/Corporate Visibility subscription agreement. /Claus Thestrup 8:30 AM 16-11-2023.
NeoDynamics AB (publ) is a Swedish Medical Technology Company dedicated to advancing diagnosis and care of breast cancer. The company’s first product NeoNavia®, a new innovative pulse biopsy system for ultrasound guided tissue sampling, is currently being introduced to the market. The biopsy system is built on a patented pulse technology, based on research at the Karolinska Institutet in Sweden.
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