After the realignment, Acutus Medical will operate as a contract manufacturing company with the potential to generate positive cash flow over the coming years
Acutus Medical to make more than half of its workforce redundant. (Credit: jesse orrico on Unsplash)
Acutus Medical has announced plans to cut nearly 65% of its workforce as part of a corporate restructuring strategy that aims to readjust resources to support its left-heart access distribution division.
The realignment plans are intended to solely aid the production and distribution of Medtronic’s left-heart access products. Additionally, they seek to realise the value of prospective earnout payments from Medtronic.
Acutus Medical signed an agreement in April last year to sell its left-heart access portfolio to Medtronic.
As part of its restructuring plan, the electrophysiological mapping (EP) mapping and ablation business will be closed by Acutus Medical. This includes the AcQMap Mapping System, the AcQMap 3D Mapping Catheter, the AcQBlate Force-Sensing Ablation Catheter, the AcGuide Max 2.0 steerable sheath, and related accessories.
Acutus Medical said that it will work with a small group of treatment managers to support AcQMap procedures till the end of this month.
The company’s restructuring steps are anticipated to be finished in Q1 2024 and are projected to significantly lower cash burn as well as ongoing operational expenses.
After the realignment, Acutus Medical will operate as a contract manufacturing company with the potential to generate positive cash flow over the coming years.
In addition, the company will keep collaborating with its financial and strategic consultants to optimise the advantages of this new business model.
Acutus Medical president and CEO David Roman said: “The realignment of resources and corporate restructuring unfortunately impacts our team.
“It is undoubtedly difficult to part with our valued and highly talented colleagues who have made substantial contributions to our Company.
“I want to thank each one of them for their dedication to Acutus and our mission.”
In the future, the firm will rely on the sale of left-heart access products at transfer prices specified in the distribution agreement and any fee-bearing transition services.