Nuwellis appoints John Erb as permanent CEO, ending interim role

Published 02/07/2025, 13:26
Nuwellis appoints John Erb as permanent CEO, ending interim role

MINNEAPOLIS - Nuwellis, Inc. (NASDAQ:NUWE), a medical technology company focused on fluid management solutions with annual revenue of $8.79 million, announced Wednesday that John Erb has been appointed as Chief Executive Officer, effective June 27, 2025, removing his interim status. According to InvestingPro data, the company maintains a healthy gross margin of nearly 65%.

Erb has been serving as interim CEO since February 2025 and previously held the CEO position at Nuwellis from 2015 to 2020. According to the company’s statement, the Board of Directors confirmed the appointment following his leadership during the interim period.

"I’m honored to lead Nuwellis at such a pivotal moment," Erb said in the press release. "We have a passionate team, a therapy that saves lives, and a vision that resonates with clinicians." The appointment comes at a challenging time for the company, as InvestingPro analysis shows the stock has declined over 94% in the past year, though the company maintains a solid current ratio of 2.23, indicating strong short-term liquidity.

During his interim tenure, Erb reportedly brought stability and renewed momentum to the organization. His permanent appointment reflects the Board’s confidence in his leadership and understanding of the company’s operations.

Nuwellis specializes in the Aquadex SmartFlow system, which provides ultrafiltration therapy for patients suffering from fluid overload that is unresponsive to medical management, including diuretics. The system is indicated for both temporary and extended use in adult and pediatric patients weighing 20 kg or more.

The company is headquartered in Minneapolis and maintains a wholly owned subsidiary in Ireland. With a market capitalization of $1.11 million, Nuwellis currently shows signs of being undervalued according to InvestingPro’s Fair Value analysis. Subscribers can access 15 additional ProTips and comprehensive financial metrics in the Pro Research Report, offering deeper insights into the company’s financial health and market position.

The announcement was made in a company press release issued Wednesday.

In other recent news, Nuwellis, Inc. reported a 3% increase in revenue for the first quarter of 2025, amounting to $1.9 million. Despite this revenue growth, the company experienced a net loss of $3 million, or $0.69 per share, with a decrease in gross margin to 56% from 64.1% the previous year. Operating expenses were reduced by 31%, contributing to a more sustainable financial outlook. Additionally, Nuwellis announced the pricing of a public stock and warrants offering, including 406,755 shares of common stock and pre-funded warrants for additional shares. The company intends to use the net proceeds for working capital and potential acquisitions. In another development, Nuwellis entered into a securities exchange agreement with its CEO, John L. Erb, involving the issuance of Series F-1 Convertible Preferred Stock. The Series F-1 Stock includes restrictions on conversion to prevent ownership exceeding 19.99% of the outstanding common stock. These recent developments highlight Nuwellis’s ongoing strategic adjustments and financial activities.

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