A start-up business looking to revolutionise the way that diabetes is monitored and managed has been bought out of administration.
Afon Technology has bought Orsus Medical which suffered financial difficulties after being unable to raise further investment due to commercial and contractual restrictions. All nine jobs were saved after a six-figure sum was agreed.
Lee De’ath and Stephen Ramsbottom from insolvency and restructuring firm CVR Global, were appointed as Joint Administrators of Orsus Medical on 25 March 2019.
De’ath, partner at CVR Global, said: “The Company traded in administration for 12 days while we sought a buyer for the business.
“The accelerated marketing process generated a great deal of interest ultimately leading to a sale to Afon Technology Limited.”
Orsus Medical Limited had performed multi-million pound research to develop smartphone wristband sensors to continually monitor blood glucose levels – with the aim of removing the need for people with diabetes to perform pin prick blood tests to manage type 1 diabetes.
Sabih Chaudhry, previously CEO of Orsus Medical, has been appointed as the CEO of Afon Technology.
Chaudhry, from Afon, said: “It was really unfortunate that Orsus went into administration which primarily resulted from the company’s lack of fundraising ability due to contractual constraints.
“The new owners were well aware of Orsus and the potential of the project so this was really a no-brainer for them. They acquired the assets, all the IP and, more importantly, the team.
“Orsus Medical will no longer be a trading company, however the name and associated trademarks have been acquired by the new owners.”
