Diabetes management company SpectRx reported that third quarter revenues dropped almost $1.4 million and net losses grew to $1.9 million due to the sale of its BiliChek business.
But SpectRx has formed a new subsidiary company called Guided Therapeutics to commercialize its non-invasive cervical cancer detection product. This will allow SpectRx, and recently named president and chief operating officer Bill Arthur, formerly of MiniMed, to focus exclusively on the diabetes business, the company says.
“We are very pleased with the addition last week of Bill Arthur to head our diabetes business,” said Mark Samuels, chairman and CEO of SpectRx. “Bill built the sales organization that propelled MiniMed’s insulin pump business to almost $300 million in annual revenue. We believe that there is no one more qualified to grow our SimpleChoice insulin pump infusion business and move our continuous glucose monitoring product forward.”
For the three months ended Sept. 30, revenue was $209,000, versus $1.6 million for the same period last year. For the nine months, revenue was $1.1 million versus $3 million for the same period last year.
The reduction in revenue for SpectRx was primarily due to the sale of its BiliChek business to Respironics in March. The reduction also reflects a one time $1 million milestone payment received in the third quarter of 2002.
The net loss available to common stockholders for the third quarter of 2003 was $1.9 million, or 17 cents per share, compared with a net loss available to common stockholders of $1.1 million, or 10 cents per share, in the comparable quarter of 2002.
For the first nine months of this year, the net loss available to common stockholders was $4.3 million, or 39 cents per share, compared with a net loss available to common stockholders of $6.8 million, or 61 cents per share, in the first nine months of 2002.
SpectRx says the reduction in the year to date loss was primarily due to “aggressive management” of overall expenses along with the gain recognized on the BiliChek sale.