Sphere Medical, the Cambridge UK diagnostic device business, saw its first half losses double to £4.2 million after generating zero revenues in the six months to June 30.But CEO Stuart Hendry and the team insist they have the technology armoury and the strategy to ensure the company doesn’t find itself in a commercial cul-de-sac.
Sphere has a strong pipeline of innovative monitoring and diagnostic devices for the critical care industry.
Dr Hendry said the priority was to secure a commercial partnering deal for its Proxima system – a patient-dedicated arterial blood analyser for use in the intensive care unit and operating room.
He said the partnering proposal had attracted strong interest from a number of leading medical device companies with global distribution capabilities. “Discussions are ongoing and securing a commercial partner remains a core objective for 2012,” he said.
Sphere’s Proxima development programme is progressing across a number of projects – disposable, monitor, software and calibration solutions. Dialogue is underway with the FDA on Proxima including a recent meeting to formulate the regulatory route for full market release of the system.
Despite a revenue-barren six months, the company retains cash and equivalents and money on treasury deposit of £8.3 million (2011: £0.7 million). Operating expenses more than doubled to £4.4m.
Dr Hendry said: “The company’s focus over the first six months of 2012 has been on the continued advancement of the development and commercialisation of our products.
“The process of identifying and concluding a deal for Proxima has been intensive and we are confident of delivering a long term partnership that maximises the potential of this product. We are focused on executing our key deliverables for the second half of 2012.”