An apple a day

There’s a very old saying that an apple a day keeps the doctor away. Now we have no idea who came up with it or how many times it’s been used but when it comes to cliché’s this has to be in the top five. We were reminded of this cliché while reading yet another press release from DarioHealth a company which is supposed to be in the conventional BGM business but is much better at issuing press releases. Now most of these releases are meaningless and amount to nothing more than garnering attention.

We also think its slightly old school and a little out of touch given the popularity of social media. OneDrop another conventional BGM business which is doing their best to become yet another coaching platform has become the master of using social media, leapfrogging Bigfoot who seems to have lost their voice for over promising and under delivering. Thanks to Abbott Bigfoot gets to live on but it won’t be long before Abbott walks away, and Bigfoot becomes Big Dead.

Moving to the CGM world you have to love another hyperactive child, Nemaura Medical. Nemaura is the makers of the world famous SugarBeat system, a system based on old technology which didn’t work the first around but why let the facts get in the way of a good story. Nemaura who we’ve followed for years caught our attention again when they noted they would be launching this NON-FDA approved device in the US. Per a company issued press release;

“Nemaura Medical Inc. (NASDAQ: NMRD) (“Nemaura” or the “Company”), a medical technology company focused on developing micro-systems-based wearable diagnostic devices and currently commercializing sugarBEAT®, its non-invasive and flexible continuous glucose monitor (“CGM”), together with BEAT®diabetes, a planned health subscription service designed to help people with Type 2 diabetes and pre-diabetes through personalized lifestyle coaching, announced it is preparing for the launch of sugarBEAT® in the U.S. under the wellness category following recent feedback from the U.S. Food and Drug Administration (the “FDA”).”

The release goes onto state;

“The FDA general wellness category use is defined as: (1) An intended use that relates to maintaining or encouraging a general state of health or a healthy activity, or (2) an intended use that relates the role of healthy lifestyle with helping to reduce the risk or impact of certain chronic diseases or disease conditions and where it is well understood and accepted that healthy lifestyle choices may play an important role in health outcomes for the disease or condition.”

Before we go on here let’s make a few points clear;

1. The FDA has NOT approved the device.

2. If accurate this would be the first time the FDA allowed this type of launch. We say if accurate as the company is the one saying they can do this NOT the FDA. We could not find any mention of the company or its product anywhere on the FDA web site.

3. As of the end of 2019 the company had just over $1 million in cash and per it’s most recent press release has entered into multiple non-binding verbal agreements which may or may not result in collaborations.

4. Reading through the most recent 10-Q you find that –

“The Company was notified by NASDAQ on July 15, 2019 that the Company no longer met the requirements of NASDAQ Rule 5550(a)(2) requiring listed securities to maintain a minimum closing bid price of $1.00 per share. The Company effected:

(i) A reverse split of the Company’s issued and outstanding common stock, par value $0.001 per share on a one (1) for ten (10) basis; and
(ii) A decrease in the Company’s authorized number of shares of common stock on the same basis from 420,000,000 shares of common stock to 42,000,000 shares of common stock which were effective with NASDAQ at the opening of business on December 5, 2019.

On December 19, 2019 the Company received confirmation from NASDAQ that the Company has regained compliance with the Minimum Bid Price Rule and the matter is now resolved.”

5. Management not surprisingly owns a boatload of stock and as per standard operating procedure hopes to find a greater fool to take this dog of a product off their hands at a vastly inflated price so that they can become rich and then repeat this scam and get richer.

Folks try as we might to bring these scams to everyone’s attention investors foolishly continue to pump money into companies like Nemaura. Back in the day before CGM it was non-invasive conventional glucose monitors that stole millions from investors, today we have a new crop of crooks with non-invasive CGM’s. Which to us conclusively proves something Momma Kliff has been saying for years – There is no cure for stupid.