Digital Health Player Adherium Announces Major Corporate Restructuring Plans

Adherium Limited (ASX:ADR) operates in the business segment of digital health technology providing technologies for medication use and remote patient management in chronic diseases. The company’s Hailie solution has proven to be very effective and improve medication adherence and health results for patients who are suffering from various chronic respiratory diseases.

The company has the most varied and a vast range of connected devices for the respiratory medication across the world. Hailie provides for the sensors which get attached to the inhalers to give the patient essential reminders regarding the usage of the inhaler.

The company’s Board recently underwent a corporate strategy review. The management via a recent release stated its re-designed objective of focussing towards its mission of technology development. It plans to continue focussing on insights into how data, and its application, will impact on the practice of medicine. It seeks to deploy expertise on potential partnerships and mergers.

To achieve business goals, the company will make itself more sleek, smaller and dynamic in order to make itself adaptable to the future opportunities and challenges.

The firm will be further reducing its development capabilities and the operational presence in the United States of America. The restructuring operation will get to show its immediate effects due to the cost savings resulting from the reduction of the workforce across the regions of the United States of America and New Zealand.

The contraction of the workforce involves exit of CEO Mr. Arik Anderson and the CFO Mr. David Allinson. As a part of management restructuring, Mr. Rob Turnbull, company’s existing VP of finance and business operations, would be escalated to the post of GM and would provide leadership to the organization going further.  The new team under the direction of Mr. Turbull would focus entirely on the development and supporting the customer growth with smart inhalers.

Moreover, the company has this week garnered a valuable US FDA 510(k) nod for its sensor for asthma AstraZeneca’s Bevespi® medication, marketed in the US for COPD.

This restructuring activity would lead to substantial cost savings and efficiencies. This, in turn, would ultimately aid in the enhancement of the development and platform capabilities while also collaborating with the leading development houses. These initiatives would lead to scalability in the company’s operations and would also support the innovation and a feature driven ecosystem which would include the mobile and platform application, sought by the commercial customers.

Meanwhile, the share price of the company has fallen drastically by 55.45 percent in the past six months. Company’s shares are trading at $0.052, up by 6.122% and with a market capitalization of $8.54 Million as on 13 December 2018.

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