Medical device maker NeuroMetrix Inc. said Tuesday its second-quarter loss deepened, as a change in Medicare reimbursement hurt revenue, which fell more than 40 percent.
The Waltham, Mass., company said it lost $4.5 million, or 20 cents per share, in the three months that ended June 30. That compares to a loss of $1.8 million, or 13 cents per share, in the same quarter last year.
Revenue fell to $3.9 million from $6.8 million.
NeuroMetrix said a change starting this year in Medicare reimbursement for nerve conduction studies using pre-configured electrodes led to a 22 percent reduction in electrode average selling price and a 25 percent drop in electrodes sold.
The company's revenue from consumables dropped 45 percent to $3.3 million, while medical equipment sales fell 27 percent to $512,108.
NeuroMetrix said it eliminated about 25 jobs, or a quarter of its work force, and has taken other cost-saving steps that should reduce annual spending by $2.5 million. It also plans to supplement its direct sales force with independent sales representatives.
The company's stock dropped about a penny to $1 in Tuesday morning trading.