MAHWAH, NJ – KORU Medical Systems, Inc. (NASDAQ:KRMD), a leader in medical devices, announced today significant changes in its executive team, including the appointment of a new Chief Operating Officer (COO) and the departure of the Chief Technology Officer (CTO).
Effective last Wednesday, Christopher Pazdan, previously Senior Vice President of Operations, has been promoted to the newly-created role of COO. Pazdan joined KORU in September 2021 and has over two decades of experience in the medical technology and pharmaceutical sectors. Prior to KORU, Pazdan held positions at Abbott Laboratories (NYSE:ABT) and Becton Dickinson (NYSE:BDX), among others.
As part of his new role, Pazdan has entered into an Amended and Restated Employment Agreement with KORU. His annual base salary has been set at $350,000, with the opportunity to earn up to a 50% bonus based on company performance.
The employment is on an at-will basis, and in the event of termination without Cause or for Good Reason, Pazdan is entitled to twelve months of his base salary and health insurance premium payments post-termination.
Concurrently, the company announced the elimination of the CTO position, currently held by Brian Case, which will be effective on September 16, 2024. Case's employment will end with the role's termination.
These executive changes come as KORU continues to refine its operational leadership. The information reported is based on a press release statement from KORU Medical Systems and is intended to provide investors with relevant updates on the company's management structure.
In other recent news, Koru Medical Systems has made significant strides in its business operations and product development. The company reported a record-breaking revenue of $8.2 million in Q1 2024, marking a 14% growth in its core business. International revenue also saw an impressive 63% increase, and the company reduced its cash burn to $700,000, aiming to be cash flow positive by the fourth quarter of 2024.
Koru Medical Systems has also announced a partnership with a global pharmaceutical firm to conduct a feasibility study using its Freedom Infusion System for a subcutaneous oncology biologic drug. The Freedom System, used by over 40,000 patients worldwide, could potentially simplify treatment protocols and enhance patient quality of life.
Furthermore, Koru Medical Systems has initiated a Phase III clinical trial for a novel enzyme replacement therapy aimed at treating a rare endocrinological disease. This therapy, which has received multiple designations from the FDA, could become the first disease-modifying treatment for approximately 10,000 patients globally suffering from this genetic disorder.
Canaccord Genuity has maintained a Buy rating on Koru Medical Systems, with a steady price target of $3.00 based on the recent regulatory clearance that allows the company's FreedomEdge syringe infusion system to be used with Cuvitru in Japan. This development presents Koru Medical Systems with new opportunities in both a fresh market and with a new drug.
InvestingPro Insights
As KORU Medical Systems, Inc. (NASDAQ:KRMD) restructures its executive leadership, investors may find it valuable to consider the company's current financial health and market performance. According to InvestingPro data, KORU has a market capitalization of $116.24 million and is trading at a high Price / Book multiple of 6.13, reflecting investor valuation of its assets relative to the share price.
Despite the challenges, the company maintains a gross profit margin of 60.24% over the last twelve months as of Q1 2024, showcasing its ability to retain a significant portion of revenue after accounting for the cost of goods sold.
InvestingPro Tips suggest caution, as analysts have revised their earnings expectations downwards for the upcoming period and do not anticipate the company to be profitable this year. However, it's notable that KORU's liquid assets exceed short-term obligations, which can provide some financial flexibility in the near term. Additionally, the company operates with a moderate level of debt, which may offer a balance between leveraging opportunities for growth and maintaining financial stability.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available that could shed light on KORU's long-term potential and investment risks. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to these valuable insights.
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