Lifeward Scores $10M Financing, Q1 Revenue Down 22%, ReWalk Exoskeleton Sales Up 11%
Lifeward closed its Oratech acquisition with $10 million financing, boosting cash to $11.4 million including $6.5 million from the deal. First-quarter revenue fell 22% to $3.9 million while ReWalk sales rose 11% to $1.6 million and cash burn dropped 33% despite a $4.9 million one-time R&D charge.
1. Strategic Transaction and Financing
Lifeward completed an equity-based acquisition of Oratech, receiving $10 million in financing and acquiring $6.5 million in cash assets. This transaction strengthens its balance sheet and integrates Protein Oral Delivery technology into its biomedical platform.
2. Product Pipeline and Trials
The Oratech deal brings the ORMD-0801 oral insulin candidate, which is slated to begin Phase 2 trials using transaction funds. Additionally, Lifeward acquired upper-body powered exoskeleton technology designed for 4.6 million stroke survivors, expanding its neurorehabilitation portfolio.
3. Q1 Financial Performance
First-quarter revenue declined 22% year-over-year to $3.9 million, driven by a 38% drop in AlterG sales offset partly by an 11% increase in ReWalk exoskeleton revenues to $1.6 million. Operating cash burn fell 33% despite a $4.9 million one-time R&D charge related to in-process research acquired in the Oratech transaction.
4. Liquidity and Outlook
Cash and equivalents rose to $11.4 million from $2.2 million at year-end, bolstered by convertible notes proceeds and Oratech cash. Lifeward expects to ship secured orders in Q2 and Q3, and will delay its Form 10-Q filing to finalize accounting for the recent strategic transaction.