News roundup: Now Clover Health faces delisting; BlackCat/ALPHV affiliate with 4TB of data puts it up for sale; $58M for Biolinq’s ‘smallest blood glucose biosensor’

Clover Health takes another pass at Nasdaq delisting. Once again, Clover’s Class A shares (CLOV) have been trading with an average closing price of below $1.00 over a consecutive 30 trading-day period, which violates Nasdaq’s continued listing minimum price criteria for the Nasdaq Global Select Market. This was announced in their most recent 8-K filed with the SEC 2 April. Clover has until 30 September to remedy the situation. An additional 180-day period may be elected if Clover transfers to the Nasdaq Capital Market. FierceHealthcare, Becker’s

The delisting is a rerun of their situation last year at this time. Clover considered a reverse stock split to be approved by shareholders but the share price improved on its own and the action was not necessary. This year, it may be. Clover is currently trading at $0.7365. Last August, it hit a high of $1.55 before sliding to below $1.00. An example of a SPAC through Social Capital Hedosophia Holdings, it hit a high of over $15 on 8 January 2021 before cracking that year based on revelations that Clover did not reveal a Department of Justice investigation starting the prior year, which prompted an SEC investigation [TTA 9 Feb 2021], triggering seven shareholder lawsuits that were not settled until December 2023. Clover Health exited the advanced value-based primary care program, ACO REACH, at the end of the 2023 performance year after two years to focus on their Medicare Advantage and Clover Assistant businesses [TTA 6 Dec 2023]. Financially, Clover closed 2023 with revenue of $2.033 billion (down from 2022’s $3.5 billion), net loss of $213.4 million, and an adjusted EBITDA loss of $44.7 million, with the losses improved over 2022. Clover release 

As predicted, 4TB of Change Healthcare data is up for sale. In a typical ransomwareiste move, the affiliate making nasty comments about BlackCat/ALPHV and claiming it had 4TB of data now has put the specs out on a dark web site called Ransomhub. The post first accuses ALPHV of stealing the $22 million ransom paid by UnitedHealth Group and not sharing it with the affiliate. It then claims it has highly sensitive data from multiple Change customers including active military PII (from Tricare), patient PII, payment and claims data, and much more. If Change/UHG isn’t interested, it will be up for sale to the highest bidder. Readers will recall the claims of ‘notchy’ early in the Change Healthcare attack [TTA 7 Mar] though UHG has not confirmed any payment to ALPHV. The demand for payment for the 4TB of data that ‘notchy’ claimed to possess was hardly unexpected.

A non-invasive “smallest ever” transdermal biosensor in development may turn the CGM business upside down. Biolinq’s latest round of $58 million will fund a pivotal clinical trial and FDA submission of its intradermal glucose sensor. The funding was led by Alpha Wave Ventures, with participation from Niterra’s corporate venture capital fund jointly operated with Pegasus Tech Ventures and existing investors RiverVest Venture Partners, AXA IM Alts, Global Health Investment Corporation, and four others, for a total since 2014 of $254 million. Crunchbase Current blood glucose sensors penetrate the skin with tiny needles. The Biolinq biosensor uses electrochemical sensors to measure glucose levels from the intradermal space just beneath the surface of the skin, on top of the capillary layer avoiding scarring. To access the intradermal layer, the sensors must be “200 times smaller than a human hair filament” according to Biolinq CEO Rich Yang. It also can combine blood glucose information with relative levels of activity in one device to eventually measure other analytes. The device as currently designed displays key information directly on the sensor–yellow light for high blood glucose, blue for normal. Release, MedCityNews

Categories: Latest News.