ROSELAND, N.J. – Milestone Scientific Inc. (NYSE: NYSE:), the developer of advanced computerized drug delivery instruments, has announced the upcoming retirement of its Chief Executive Officer, Arjan Haverhals, set for December 31, 2024. Haverhals, who has played a pivotal role in the company’s growth, will continue to serve on the Board of Directors post-retirement and will provide consulting services to assist with the leadership transition.
Neal Goldman, currently Chairman of the Board, will assume the role of Interim CEO effective immediately following Haverhals’ departure. The company is actively seeking a permanent CEO through an independent executive search firm to lead the next growth phase and further the commercialization of the CompuFlo® Epidural System.
Goldman, who joined Milestone (WA:)’s Board in 2019 and has been its Chairman since 2023, brings a wealth of financial and corporate governance experience to his new role. His background includes founding Goldman Capital Management, Inc., and holding senior positions across various firms, including Neuberger Berman and Shearson Lehman Hutton.
During his tenure, Haverhals spearheaded significant financial and operational improvements within the company. His leadership was instrumental in securing a Medicare Part B Physician payment rate for the CompuFlo Epidural System, a notable achievement for the company.
Goldman expressed gratitude for Haverhals’ contributions, emphasizing the strong foundation laid for Milestone’s future growth. Haverhals expressed pride in the company’s accomplishments and optimism for its growth prospects, reaffirming his commitment to its success while on the Board.
Milestone Scientific specializes in the research and development of innovative injection technologies for medical and dental applications. Their proprietary DPS Dynamic Pressure Sensing Technology® is foundational to the development of next-generation devices focused on precision and patient comfort.
This announcement is based on a press release statement from Milestone Scientific Inc. The company cautions that forward-looking statements within the release are subject to various risks and uncertainties, and actual results could differ materially from those anticipated.
In other recent news, Milestone Scientific Inc. reported Q2 2024 financial results, recording a net income of $0.2 million. Notably, the company secured the Medicare Part B physician payment rate assignment for their CompuFlo Epidural System, targeting an initial market potential of about $250 million among Medicare patients. This development follows the system’s successful integration into the iHeal Pain Center, marking a new phase in Milestone’s commercial strategy.
Milestone Scientific has also expanded its business by partnering with Axial Biologics and obtaining regulatory approval to sell CompuFlo in Brazil. Despite facing challenges with freight forwarders that impacted international sales, the company’s U.S. e-commerce sales slightly increased, and gross margins improved.
The company’s CEO, Arjan Haverhals, expressed satisfaction with these developments and remains confident in improving sales for the remainder of the year. These recent developments highlight Milestone Scientific’s strategic efforts to enhance its market position and financial stability.
InvestingPro Insights
As Milestone Scientific Inc. (NYSE: MLSS) prepares for a leadership transition, InvestingPro data provides additional context to the company’s financial position and market performance. Despite the upcoming CEO change, MLSS faces some financial challenges that investors should consider.
According to InvestingPro data, Milestone Scientific’s market capitalization stands at $51.95 million, reflecting its position as a small-cap company in the medical devices sector. The company’s revenue for the last twelve months as of Q2 2023 was $8.42 million, with a concerning revenue growth decline of -15.47% over the same period.
InvestingPro Tips highlight that MLSS holds more cash than debt on its balance sheet, which could provide some financial flexibility during the leadership transition. However, the company was not profitable over the last twelve months, with an operating income margin of -79.93%, indicating significant operational challenges.
The stock’s recent performance has been underwhelming, with InvestingPro data showing a one-month price total return of -21.27% and a three-month return of -33.66%. This aligns with the InvestingPro Tip that the stock has fared poorly over the last month, suggesting investor uncertainty possibly related to the announced leadership changes.
Interestingly, despite these challenges, MLSS is trading at a high Price / Book multiple of 6.59, which may indicate that investors still see potential value in the company’s assets or future prospects, possibly related to its CompuFlo® Epidural System.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for MLSS, providing a deeper understanding of the company’s financial health and market position as it navigates this transitional period.
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