Rennova Health Inc (NASDAQ:RNVA) released the summary of its recent progress and commentary on its business milestones and strategy for 2017. Seamus Lagan, the CEO of Rennova, said that they took numerous measures in 2016 to address issues in the substance abuse testing division. They have begun to witness the initial indications of success that will be pivotal to record top-line growth.
Indeed, their fourth quarter was remarkable quarter for new sales in over a year, and comprised several new customers, and a number of returning customers. They have diversified their business model and have finalized in-network contracts with numerous third-party payers. The company has moved their focus from substance abuse testing offerings in a single geographic location to offering a range of diagnostic offerings across the nation to a varied and expanding client base.
The expert view
The CEO of Rennova added that as well as recent accomplishments in the substance abuse and pain management division, they have initiated an association with a clinical research firm and they project to commence generating sales in 1H2017. They have secured a deal with a service-disabled, veterans-managed small business to be their sole provider of lab services and are offering services to initial clients under a new association with an accountable care firm. They also have extended their menu to now provide specialized pharmacogenomics assessment for personalized medicine via Genomas.
Mr. Lagan added that they project that this continued expansion of their client base and products, combined with a growing count of contracts with numerous payers, will enable them to grow their 2017 revenues to levels that closely resemble years preceding 2016.
As previously reported, Rennova completed an offering of preferred stock in December 20, 2016. The firm currently has over 84 million shares of common stock outstanding. In the last trading session, the stock price of Rennova declined over 3% to close at $0.0875.
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