Instruments Ltd (ASX code: BZI) today announced the completion of the financial commitment to its first series of clinical trials and commented on implications of this for the cash position of the company. Incoming CEO Mr Richard Smith said, "BrainZ has reached a critical point in its evolution as a medical device manufacturer. "Almost three years ago we started a 'seeding program' aimed at outcomes-focused clinical research on our product. "This is a crucial element of our development in terms of developing core data that establish the credentials of our product, and drive adoption of the technology by healthcare professionals. "As is the case for all developing device companies, this research comes at a high cost, but lays a crucial foundation for growth." "BrainZ is now entering a phase transition in its development, in that its financial commitment to these programs is now scaling back. "At the same time, the data outputs from these programs are becoming available to the company and will yield benefits for five to six years," he said.
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"The recent milestone in our seeding programme is significant for two reasons. "First, we expect our outlay of cash associated with these initial clinical trials to be reduced by over $0.7 million annually. "Secondly, the data will begin to be published over the next year and will continue over the next few years. "Some projects will lead on to additional research supported largely through government grants and other external sources. "We believe these data contribute significantly to the existing evidence base supporting bedside monitoring of infants at risk of brain injury and offers significant competitive advantage to BrainZ." Mr Smith added, "These savings, coupled with other efficiency measures which I have identified and begun to implement, are expected to improve the company's overall finances and cash position. "We expect the company's total cash outlay to be reduced by approximately $1.3 million annually. "At the same time, we are reprioritising projects to focus on improving our product's fit to the US market."
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