RSM handles administration for medical tech company
1 Apr 2019
Graham Bushby, partner, and Nick Edwards, director, of RSM Restructuring Advisory have been appointed joint administrators of insulin pump manufacturer Cellnovo Ltd, which has ceased trading putting up to 100 jobs at risk
1 Apr 2019
Cellnovo Ltd is the UK affiliate of French company Cellnovo Group which is listed on the Euronext Paris exchange.
The company developed, manufactured and marketed the first mobile, connected, all-in-one diabetes management system from its operations base in Bridgend’s Pencoed Technology Park.
Cellnovo’s insulin pump comprises a mobile touchscreen controller with an integrated blood glucose meter. The device allows optimal management of insulin delivery whilst allowing patients extensive freedom of movement. Thanks to automatic transmission of data, the system also allows the patient’s condition to be continually monitored by family members and healthcare professionals in real time.
The system was innovative and required further development to improve its robustness. This has negatively impacted on sales growth, the group’s ability to generate the investment it needed, and its ability to meet its financial covenants to its lenders.
Following the appointment of administrators, it became clear that it was no longer viable for the company to continue to manufacture product. As a result, around 70 staff have been made redundant, while over 20 key staff have been retained to ensure an orderly wind down of the company’s operations, provide customer support, and to assist with finding new investors or achieving a sale of the business and assets.
There are several hundred patients worldwide who use the Cellnovo product of which approximately 180 are based in the UK. Product users are advised to speak to their clinical specialists as soon as possible to arrange alternative methods of insulin delivery.
Graham Bushby, RSM partner and one of the joint administrators said: 'It is very regrettable that the financial situation of Cellnovo has led to so many redundancies in Bridgend and we will be supporting staff with their claims to the Redundancy Payments Office.
'Prior to our appointment, we understand that Cellnovo had worked to supply extra stock of insulin cartridges to customers, including the NHS, in order to increase the time that patients will have to find an alternative method of drug delivery. However, we advise all users to contact their clinical specialists as soon as possible.
'As administrators, we also have to undertake our duties to creditors and we will be taking steps to seek a buyer for the business or the assets including Cellnovo's innovative IP. We will be carrying out a marketing exercise shortly and would be very keen to hear from interested parties.'
Report by Pat Sweet