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Rescue deal saves jobs at Orsus Medical

Andrew Guilford

April 25, 2019

17330

A diabetes technology company has been bought out of administration, saving a number of jobs.

Insider Media reports Orsus Medical Ltd, which suffered financial difficulties after being unable to raise further investment due to commercial and contractual restrictions, has been bought by Afon Technology Ltd.

Chepstow based Orsus Medical had performed multi-million pound research to develop smartphone wristband sensors to continually monitor blood glucose levels, removing the need for people with diabetes to perform pin prick blood tests to manage type 1 diabetes.

The jobs of all nine members of staff have been saved after a six figure sum was agreed with Afon Technology.

Lee De’ath and Stephen Ramsbottom from insolvency and restructuring firm CVR Global were appointed as joint administrators on March 25th.

Lee De’ath, a 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."

Sabih Chaudhry, previously chief executive of Orsus Medical, has been appointed as chief executive of Afon Technology. He 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."

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