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Senseonics weighs options amid coronavirus pandemic
Posted on Tuesday, 24 March 2020 11:26
Medical technology company Senseonics Holding has agreed to explore strategic alternatives to enhance shareholder value.
The company, which is developing and commercialising of the first and only long-term implantable continuous glucose monitoring (CGM) system, is looking to provide stability to the business in light of the ongoing market dislocation caused by Covid-19.
Senseonics is working with Moelis & Company and Cooley as its financial and legal advisors on the strategic review.
Shares in the group closed down 10.9 per cent to USD 0.57 following the announcement yesterday, giving the business a market capitalisation of USD 115.85 million.
The news comes a day after it terminated its loan and security agreement with Solar Capital and paid all amounts outstanding, including a payoff fee and prepayment premium at a total USD 48.50 million.
Following this, the group had no secured debt outstanding.
Senseonics has said it is in discussions with new financing sources with the intention of providing significant funding flexibility to enable the board to complete its strategic review.
Under the terms of the exploration of options, the company wants to focus on core operations required to ensure the long-term success of the Eversense CGM system and it believes this will allow reductions in cost structure an improvements in its operating cash flow.
Some of the alternatives under consideration could include a sale; however, there is no guarantee that any action or transaction will take place.
Senseonics does not intend to provide updates regarding the strategic review unless or until it determines that further disclosure is necessary.
The company’s CGM products are designed to help people with diabetes confidently live their lives with ease.
Its small sensor Eversense system is placed under the skin and communicated with a smart transmitter worn over the sensor, with updates sent every 5 minutes to a mobile application on the user’s smartphone.
Senseonics posted revenue of USD 21.30 million in the year ended 31st December 2019, up 12.6 per cent from USD 18.91 million in the previous 12 months.
Net loss widened significantly to USD 115.55 million in 2019, compared to USD 93.97 million in 2018.
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