Allurion Technologies, Inc. (NYSE:ALUR), a medical device company specializing in surgical and medical instruments with a market capitalization of $27.77 million, announced the appointment of R. Jason Richey as a Class II director.
The appointment, effective December 30, 2024, expands the company's Board of Directors from eight to nine members. According to InvestingPro data, the company maintains impressive gross profit margins of 73%, despite facing operational challenges.
Richey, who currently serves as an independent consultant to RTW Investments, LP—a stockholder of Allurion—brings a wealth of experience to the board. His previous roles include President and CEO of Cytrellis Biosystems, Inc. from June 2022 to October 2024 and various leadership positions at Cutera , Inc. (NASDAQ:CUTR), including President and COO.
The company's filing with the Securities and Exchange Commission on Monday indicated that Richey's compensation will align with Allurion's existing policies for non-employee directors. These details were outlined in the company's Form S-4/A filed on July 6, 2023.
With a career spanning over 17 years in the medical device industry, Richey's experience includes executive roles at LivaNova PLC (NASDAQ:LIVN) and Cyberonics Inc., where he was involved in sales, marketing, and management at an international level. His educational background includes a B.A. in Biology from Indiana University.
This appointment comes at a crucial time for Allurion, as InvestingPro analysis reveals the company faces significant challenges, including rapid cash burn and substantial debt obligations.
For detailed insights into Allurion's financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Allurion's announcement clarified that there are no other arrangements or understandings between Richey and any other persons related to his selection as a director, nor is he involved in any transactions or proposed transactions with the company.
This board expansion reflects Allurion's ongoing efforts to strengthen its leadership with experienced professionals in the medical device field. The information is based on a press release statement filed with the SEC.
Based on current market data, InvestingPro's Fair Value analysis suggests the stock may be undervalued, though investors should note the company's current financial health score is classified as WEAK. Discover more detailed analysis and 18 additional ProTips about ALUR on InvestingPro.
In other recent news, Allurion Technologies has announced a one-for-twenty-five reverse stock split, aiming to elevate the market price of its common stock and address the deficiency regarding the NYSE's minimum price requirement. This action will reduce the company's approximately 67.78 million outstanding shares to roughly 2.71 million shares.
The company's recent third-quarter revenue was reported to be $5.4 million, a decrease from the previous year, leading Allurion to revise its full-year 2024 revenue guidance to fall between $30 million and $35 million.
In the midst of these financial challenges, Allurion's shareholders approved key proposals, including the re-election of three Class I directors and a reverse stock split. They also ratified the appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for the current fiscal year.
On the analyst front, TD Cowen maintains a Buy rating for Allurion, recognizing the company's strategic plan to improve commercial performance and significantly cut operating costs. However, Chardan Capital Markets downgraded Allurion's stock from Buy to Neutral, citing a pattern of underwhelming business performance.
In recent developments, Allurion plans to cut its operating expenses by half and reduce its workforce by 50% by 2025. These are recent developments, and investors are eagerly awaiting the end-of-year Audacity study results, which could influence the company's future direction.
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