MAHWAH, N.J. - KORU Medical Systems, Inc. (NASDAQ: KRMD), a company specializing in subcutaneous infusion solutions, has announced a partnership with an unnamed global pharmaceutical firm to conduct a feasibility study using its Freedom Infusion System for a subcutaneous oncology biologic drug. This drug, already approved by the FDA and EMA, is currently administered manually by healthcare professionals.
The Freedom System, a mechanical ambulatory drug delivery device, supports the self-administration of large volume biologic medications ranging from 2mL to over 100mL. It is designed to facilitate at-home treatment for patients or in-clinic administration by healthcare providers. The system has 11 drugs approved on its label and is used by over 40,000 patients worldwide.
Subcutaneous administration of oncology therapies is becoming increasingly popular due to the potential benefits of simplifying treatment protocols, alleviating hospital burdens, and enhancing patient quality of life. With the growing trend of converting intravenous biologics to subcutaneous formulations, there is a significant opportunity to optimize drug delivery for both healthcare professionals and patients.
Linda Tharby, President and CEO of KORU Medical, expressed optimism about the collaboration, highlighting the potential to address unmet needs in the delivery of subcutaneous oncology treatments. Tharby also mentioned the possibility of commercializing the Freedom System for this oncology drug within 12 months, following a successful feasibility study.
InvestingPro Insights
In light of KORU Medical Systems' recent announcement regarding their partnership for a feasibility study, investors may be evaluating the company's financial health and market performance. According to InvestingPro data, KORU Medical Systems has a market capitalization of $96.1 million, and despite a challenging period, has maintained a gross profit margin of 60.24% over the last twelve months as of Q1 2024. This indicates a strong ability to retain earnings from sales after accounting for the cost of goods sold, which could be a positive sign for the company's financial resilience.
However, the company's P/E ratio stands at -7.18 and it has not been profitable over the last twelve months. This might raise concerns about the company's current profitability, especially as analysts do not anticipate the company will be profitable this year. An InvestingPro Tip suggests that KORU Medical Systems is trading near its 52-week low, which could potentially offer a buying opportunity for investors who believe in the company's long-term strategy and the potential market growth for its Freedom Infusion System.
On a more positive note, another InvestingPro Tip highlights that KORU's liquid assets exceed its short-term obligations, which can be reassuring for investors concerned about the company's ability to meet its immediate financial commitments. For those looking to delve deeper into KORU Medical Systems' financials and market performance, InvestingPro offers additional tips. There are 7 more InvestingPro Tips available which could provide further insights into the company's long-term viability and operational efficiency. Investors interested in these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The partnership for the feasibility study represents a potential growth avenue for KORU Medical Systems, and the InvestingPro platform provides a comprehensive analysis of the company's financial metrics to help investors make informed decisions.
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