Paris-based Cellnovo has cut down on staff as well as stopped manufacturing and selling its diabetes management system as the company found itself unable to scale up.
Until this week, Cellnovo was selling a diabetes management system consisting of a small insulin pump that was controlled via smartphone. Hundreds of diabetics using this technology have been encouraged to talk to their doctors to find an alternative as the company announced today the manufacturing and commercialization of the device have been discontinued.
“This decision was made after much thought and this is the only option open to us today,” stated Sophie Baratte, Managing Director of Cellnovo. “Unfortunately, we have not been able to meet the challenges of scaling up an innovative system, in a context of intense competition and cost pressures.”
On Tuesday, the company announced that its UK office had gone into administration. Its staff of 92 has been reduced to 20 employees that will ensure the operations are discontinued smoothly and identify options to sell the business.
Today, the company has announced it is starting a conciliation proceeding in France to reach a settlement with its creditors and partners. The whole company will be undergoing a restructuring plan and will from now on focus on identifying possible partners and investors to take on the technology developed by Cellnovo.