Imricor Medical Systems’ (ASX:IMR) clinical sites agreements in Europe impacted due to Covid19

Summary

  • Higher than anticipated disruptions due to Covid-19 in Europe has affected Imricor Medical Systems’ clinical sites agreements.
  • The management expects the impact to have a minor delay in the execution, and it is entering 2021 with a strong pipeline.
  • The company appointed Mr Gregg Stenzel as the COO, effective from 1 January 2021.

On 30 December 2020, Imricor Medical Systems, Inc. (ASX:IMR) released an update regarding the establishment of the clinical sites and the appointment of a new COO, Mr Gregg Stenzel.

Update on Clinical sites

In early October 2020, the company had advised the market that it expects to have a total of 14 clinical sites with the agreements to purchase its products, ready by the end of 2020. These estimations were made considering the anticipated impact of Covid-19. The strong progress on signing new clinical sites in the quarter ended 30 September 2020 with strong pipeline were taken into consideration before making the estimations.

However, the impact of Covid-19, especially during the second wave in Europe, has been worse than what was anticipated. The impact in certain countries has also been severe where the company was well progressing across 12 sites with the strong potential to close the agreement by the year-end. This has consequently led to a delay in the sales process, and the finalizing of some agreements have been pushed forward.

After considering all the developments, the company expects to have a total of nine clinical sites agreements to be signed by 31 December 2020 for the agreement to purchase Imricor’s products. The company’s strong pipeline for the short term would significantly increase the no. of signed agreements in 2021.

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Management Commentary

Imricor’s Chair and CEO, Steve Wedan, acknowledged that the last two months of the year were challenging in Europe, especially in Germany and the Netherlands, where the company targeted its clinical sites. Despite this, excellent progress has been made with many agreements advancing to the stage of final review and execution.

He also added that these delays due to Covid-19 are expected to be minor, and excellent growth in the pipeline, including the sales distribution agreements, is expected to grow further in 2021. For the next year, the company is working closely with Siemens to establish similar agreements to strengthen its pipeline.

The company’s expansion plans are also progressing as per plans and clinical trials are moving forward on schedule.

Appointment of the new COO  

The company has announced the appointment of Mr Gregg Stenzel as the COO effective from 1 January 2021. Mr Stenzel would lead the execution of the company's critical strategic plans across the most functional areas of the business.

He has over 20 years of experience in this industry with extensive knowledge in customer support, supply chain management, new product development etc.

Stock Performance

The delay in some agreements impacted the investors' sentiment and consequently, the stock price. Imricor’s share price is trading 1.74% lower at A$2.25 (as at 11:23 AM AEDT). The stock continues to be in a downtrend since last three months, delivering a negative return of 10.7%. However, the YTD return stands at 93.9%.

 

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