The medical technology space has grown by leaps and bounds in recent times and many companies have come into focus among investors during that time. One of the medical technology companies to have come into focus this week is that of Senseonics Holdings Inc (NYSEAMERICAN:SENS), which announced its financial results for the second fiscal quarter this past Monday.

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The company’s performance seems to have been welcomed by the market and the stock rallied by as much as 5% following the earnings announcement. Due to the gains made by the stock, it could actually be a good idea for investors if they consider having a closer look at Senseonics Holdings and its business.

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The most important starting point for investors could be the second-quarter earnings report released by Senseonics earlier this week. The company, which is involved in the manufacturing and commercialization of continuous glucose monitoring systems, managed to reduce its net losses considerably year on year. Senseonics posted a net loss of $7.5 million in the quarter but that also reflected a reduction of as much as $23.6 million from the prior-year period.

In March 2020, the company had executed a range of actions to reduce costs and also put plans in place to streamline its operations considerably. However, that is not all. The company also mentioned that it expects to submit the 180 Day Eversence product to the United States Food and Drug Administration.

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The revenues generated by the company were vastly reduced since commercial operations in the United States had to be suspended. Net revenues for the quarter came in at $261000, which was significantly lower than the $4.6 million that the company had generated in the second quarter last year.

However, at the same time, it should be pointed out that the company’s gross profit for the quarter grew to $3.4 million. In the year-ago period, Senseonics had managed to generate a gross profit of only $1.1 million. At the end of the second quarter, the company reported a cash balance, including equivalents and restricted cash, of $21.6 million.

On the other hand, the outstanding debts stood at $106.4 million. The management also announced that it believes that the annualized cash burn is going to be short of $60 million. Senseonics added that if it can be managed to get 100% of the total financial commitments then it would not be a problem to fund operations until the end of 2021.

On Tuesday, the PHC Holdings Corporation and a constituent of the PHC group Ascensia Diabetes Care announced that they are going into a strategic partnership with Senseonics Holdings. By way of this partnership, there is an agreement regarding a worldwide distribution and commercialization agreement. Additionally, there is also a concurrent financial agreement.

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