Can NeuroMetrix Turn Itself Around?

By Chris Lange Updated Jan 13, 3:37PM EST · Published Dec 29, 11:55AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Can NeuroMetrix Turn Itself Around? — © Thinkstock

NeuroMetrix Inc. (NASDAQ: NURO) might be turning itself around with the launch of its system for detecting diabetic neuropathy. On Tuesday morning, the company reported the commercial launch of its DPNCheck in Mexico. The initial DPNCheck order will be utilized by one of Mexico’s six major government health care institutions to improve the detection of diabetic neuropathy and advance the overall management of diabetes in its patient population.

Mexico has one of the highest rates of type 2 diabetes in the world, with about 12% of the adult population diagnosed. The disease results in 70,000 deaths per year, making diabetes the leading cause of death for Mexico. The prevalence of diabetes is projected to continue to increase in the coming years.

For some background: DPNCheck is a quantitative nerve conduction test that is used by physicians and health care professionals to evaluate systemic neuropathies such as diabetic peripheral neuropathy (DPN). It is designed to be used at the point-of-care to objectively detect, stage and monitor DPN. The device measures nerve conduction velocity and response amplitude of the sural nerve, a nerve in the lower leg and ankle. These parameters are recognized as sensitive and specific biomarkers of DPN.

Michael MacDonald, NeuroMetrix Senior Vice President of Commercial Operations, commented:

Mexico is a very important component of our international strategy for DPNCheck and we believe this initial sale will help accelerate Scienta Farma’s efforts to expand DPNCheck adoption within the other major government healthcare institutions.

[nativounit]
Alberto Elias Fernandez, Executive Vice President of Scienta Farma, said:

DPNCheck is a significant clinical advance for the care of diabetic patients in Mexico. We are excited to be partnering with NeuroMetrix to bring this important technology to clinicians in Mexico.

As 2015 is coming to a close, NeuroMetrix has vastly underperformed the market, with the stock down roughly 70% year to date.

Shares of NeuroMetrix were trading up over 6% at $2.45 Tuesday, with a consensus analyst price target of $9.00 and a 52-week trading range of $2.17 to $8.20.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.