Aspira Women’s Health hits $1.5M ARPA-H milestone

AUSTIN, TX - Aspira Women’s Health Inc. (NASDAQ:AWH), a company specializing in the development of diagnostic tools for gynecologic diseases, has announced the completion of a significant development milestone in its partnership with the Advanced Research Projects Agency for Health (ARPA-H). According to InvestingPro data, the company, currently valued at $1.75 million, has seen its stock price decline by over 96% in the past year, making this milestone particularly crucial for its future prospects. By meeting the second milestone of the ARPA-H award, Aspira has received a $1.5 million cash payment as part of a $10 million agreement.

The ARPA-H Sprint for Women’s Health initiative aims to address unmet needs in women’s health and promote transformative innovations. Aspira’s project under this initiative involves the development of ENDOinformTM, a diagnostic tool for endometriosis. The recent achievement is a testament to the company’s progress in creating a non-invasive diagnostic test that could significantly impact the management of endometriosis.

Mike Buhle, CEO of Aspira Women’s Health, expressed pride in the team’s accomplishment and emphasized the milestone as a validation of their work. The $1.5 million payment will contribute to reaching the next milestone, expected in the second quarter of 2025. This funding comes at a critical time, as InvestingPro analysis indicates the company has been quickly burning through cash, with a concerning current ratio of 0.76 and short-term obligations exceeding liquid assets. InvestingPro subscribers have access to 15 additional key insights about AWH’s financial health and market position.

Aspira’s ongoing project includes a multi-marker blood test that incorporates an AI-enabled algorithm to detect endometriosis. This approach builds on the technology used in Aspira’s ovarian cancer risk assessment blood tests, which have been commercially successful.

The second milestone involved enhancing research and development capabilities and initiating steps such as acquiring patents and building a new molecular laboratory. The company has also engaged in market research to position the test effectively.

The third milestone, which involves further analytical development and a customer study framework, is anticipated to be completed in the upcoming quarter, with an additional $1.5 million cash payment upon successful completion. The final milestones are scheduled for the fourth quarter of 2025, concluding in early 2026.

Aspira Women’s Health is known for its AI-powered tests for the diagnosis of gynecologic diseases, including OvaWatch® and Ova1Plus®, which form the OvaSuiteSM portfolio for ovarian cancer risk detection. The company’s pipeline also includes tests for ovarian cancer and endometriosis diagnosis.

This progress update is based on a press release statement from Aspira Women’s Health and reflects the company’s current achievements and planned developments. The forward-looking statements in the original press release are subject to risks and uncertainties that may cause actual results to differ materially. Recent financial data from InvestingPro shows the company generated $9.18 million in revenue over the last twelve months, with a gross profit margin of nearly 60%. However, with an EBITDA of -$16.19 million and analysts not anticipating profitability this year, investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering this and 1,400+ other US stocks.

In other recent news, Aspira Women’s Health has reported several significant developments. The company has resolved a compliance issue with Nasdaq’s listing rules related to a private placement of securities in June 2024, which initially violated Nasdaq’s Listing Rule 5635(c). Aspira amended the warrants involved in the transaction to comply with the rule, as confirmed by Nasdaq staff. Additionally, Aspira has decided to withdraw its planned public offering, retracting its Registration Statement on Form S-1 filed earlier this year, without disclosing specific reasons for this decision.

In terms of executive changes, Dr. Sandra Milligan, the President of Aspira, will resign for personal reasons, with Jamie Sullivan and Todd Pappas stepping in to cover her responsibilities. Furthermore, Ellen Beausang has been appointed to the Board of Directors, bringing over 25 years of experience in the pharmaceutical and diagnostic industry. The company also announced the resignation of James Crawford, Vice President of Finance, and Celeste Fralick, a board member, both for personal reasons. These recent developments reflect Aspira Women’s Health’s ongoing adjustments and strategic decisions as it continues to focus on women’s health diagnostics.

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