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NeuroOne begins limited launch of FDA-cleared RF ablation system

EditorIsmeta Mujdragic
Published 03/26/2024, 09:39 AM
NMTC
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EDEN PRAIRIE, Minn. - NeuroOne Medical Technologies Corporation (NASDAQ:NMTC), a company specializing in neurological disorder treatments, announced the limited commercial launch of its OneRF™ Ablation System, which recently received FDA 510(k) clearance. According to the company's CEO, Dave Rosa, the system is the first thin-film electrode technology in the market that can perform both diagnostic and therapeutic functions using the same electrode.

The OneRF™ Ablation System is intended for creating radiofrequency (RF) lesions in nervous tissue during functional neurosurgical procedures. NeuroOne expects to begin shipping the systems this week to select centers, with scheduled cases to start in April. The technology is designed to potentially reduce hospital stays, the number of surgeries, and adverse events while offering temperature control to enhance patient safety.

This product marks NeuroOne's first device with a therapeutic indication and complements its existing FDA-cleared Evo® cortical and sEEG electrode product lines, which are used for recording electrical activity in the brain for less than 30 days. The company estimates the current brain ablation market to be at least $100M globally and anticipates further growth as it targets larger patient populations with unmet clinical needs.

NeuroOne's focus remains on providing minimally invasive and high-definition solutions for EEG recording, brain stimulation, and ablation for patients with various neurological conditions, including epilepsy, Parkinson's disease, and chronic pain. The company also considers potential applications in other areas such as depression, mood disorders, and artificial intelligence.

The information in this article is based on a press release statement from NeuroOne Medical Technologies Corporation.

InvestingPro Insights

As NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) embarks on the commercial launch of its OneRF™ Ablation System, investors and stakeholders are closely monitoring the company's financial health and market performance. The latest data from InvestingPro paints a detailed picture of the company's current financial position.

NeuroOne's market capitalization stands at approximately $37.99 million, reflecting the market's valuation of the company. Despite the innovative strides in medical technology, the company's financial metrics indicate challenges. The Price/Earnings (P/E) Ratio, a measure of the company's current share price relative to its per-share earnings, is negative at -1.91, and the adjusted P/E ratio for the last twelve months as of Q1 2024 is also negative at -2.64. This suggests that the company is not currently profitable, a sentiment echoed by analysts who do not anticipate profitability this year, as per InvestingPro Tips.

InvestingPro Tips also reveal that while NeuroOne holds more cash than debt on its balance sheet, it is quickly burning through cash. This is a critical factor for investors to consider, especially for a company in the growth phase of its business cycle. Additionally, the company's gross profit margin for the last twelve months as of Q1 2024 stands at a concerning -217.56%, reflecting costs that significantly exceed revenues.

On a more positive note, NeuroOne has experienced a significant return over the last week, with a 17.59% price total return, and a large price uptick over the last six months, indicating a 40.04% return. This could suggest growing investor confidence or market reactions to recent company developments.

For a deeper dive into NeuroOne's performance and additional InvestingPro Tips, interested readers can visit https://www.investing.com/pro/NMTC. There are over ten additional tips available on InvestingPro, providing a comprehensive analysis that could be invaluable for making informed investment decisions. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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