NEWTOWN, Pa. - Helius Medical Technologies, Inc. (NASDAQ:HSDT), a neurotech company, has announced a partnership with Lovell Government Services to offer its Portable Neuromodulation Stimulator (PoNS) device to U.S. federal healthcare systems, including the Department of Veterans Affairs (VA). The PoNS device is designed as a short-term treatment for gait deficit in adults with mild-to-moderate multiple sclerosis (MS) symptoms, to be used alongside physical therapy.
The VA, through its Multiple Sclerosis Centers of Excellence, annually reports over 28,000 MS cases, highlighting a significant patient population that could potentially benefit from the PoNS therapy. Lovell Government Services, a Service Disabled Veteran Owned Small Business (SDVOSB), will facilitate the distribution of PoNS devices, aiming to improve the quality of life for veterans with MS.
In a recent statement, Dane Andreeff, President and CEO of Helius, referenced a study where all MS patients showed clinically meaningful improvement in gait after 14 weeks of PoNS Therapy. The therapy's real-world impact was exemplified by the story of Kevin Byrne, a retired U.S. veteran with MS, who regained the ability to enjoy walking activities with his daughter after using the PoNS device.
Chris Lovell, CEO of Lovell Government Services and a retired U.S. Marine Corps Major, expressed pride in introducing the PoNS device to federal healthcare providers, stating the importance of veterans having access to innovative and effective resources.
Helius Medical Technologies focuses on neurologic deficits using technology that promotes neuroplasticity. The PoNS device, which is non-implantable and delivers neurostimulation through a mouthpiece, is also authorized for sale in Canada and Australia for different indications related to gait and balance deficits.
The partnership with Lovell is part of Helius's broader efforts to increase federal revenue streams and win government contracts. The information regarding this partnership is based on a press release statement.
InvestingPro Insights
As Helius Medical Technologies, Inc. (NASDAQ:HSDT) forges a significant partnership to distribute its PoNS device within U.S. federal healthcare systems, key financial metrics and market performance from InvestingPro provide a comprehensive understanding of the company's current financial health.
With a modest market capitalization of $5.02 million, Helius Medical is navigating a challenging
landscape, marked by a revenue decline of 18.17% in the last twelve months as of Q1 2023. The company's gross profit margin stands at 9.47%, which suggests efficiency challenges in converting sales into profits.
InvestingPro Tips indicate that Helius holds more cash than debt on its balance sheet, which is a positive sign for financial stability. However, the company is quickly burning through cash and analysts do not expect profitability this year.
Moreover, with a negative P/E ratio of -0.57 for the last twelve months as of Q1 2023, investor returns based on earnings appear to be under pressure. Despite a strong return over the last month, Helius Medical's stock price has experienced a significant decline over the last five years.
For investors and stakeholders evaluating Helius Medical's potential, these insights underscore the importance of closely monitoring the company's financial trajectory and market performance. To access a broader range of InvestingPro Tips, which currently lists 11 additional insights for HSDT, visit https://www.investing.com/pro/HSDT. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching your investment strategy with real-time data and expert analysis.
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