HealthBeacon, a Dublin-based company specializing in medical technology, is facing challenges that were unexpected. The firm’s CEO has departed, recurring revenue is significantly lower than projected, and it needs to secure €11m to cover costs for the next two years.
Despite a trading update that highlighted progress in technology roll-out, HealthBeacon’s share price has plummeted by approximately 95% since its IPO less than two years ago.
HealthBeacon’s flagship product, the ‘Smart Bin,’ is designed for individuals who self-inject at home, targeting patients with conditions such as diabetes or multiple sclerosis. This innovative device ensures medication adherence and securely shares treatment data with healthcare providers, caregivers, and family members.
The company made headlines when it listed on Euronext Dublin in December 2021, raising €25m and achieving a valuation of nearly €100m. The listing was seen as a significant accomplishment for the exchange, which has struggled with departures of notable companies. HealthBeacon’s participation in Euronext’s ‘IPO Ready’ program further enhanced its reputation.
Although the company initially appeared promising, shareholders have experienced a turbulent journey. The share price, originally listed at €5.85, dropped to €2.80 due to supply chain delays. It hit a low point of €0.61 in March 2023 but partially recovered to €1.90 in July, attributed to progress in securing partnerships in the US.
However, the latest update in September brought more concerning news. HealthBeacon disclosed the departure of its CEO, along with a downward revision of annual recurring revenue to €3.2m, significantly below the earlier forecast. To sustain operations and achieve financial stability, the company now requires approximately €11m over the next 18-24 months.
Although interim results for sales up to June remained flat at €0.9m, HealthBeacon reassured investors about its progress and aimed to achieve €17m in recurring revenue by the end of 2024. Nevertheless, funding remains the primary concern, particularly when the current valuation of the company is below €4m.
With the future of HealthBeacon hanging in the balance, a decision regarding funding is imminent.
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