Vadnais Heights-based Angeion Corp. said it is working on getting itself into better financial shape.
The medical diagnostic company, which reported an $81,000 net loss in the third quarter, is looking at tweaking its strategy for its New Leaf brand, which provides metabolic assessment data.
Angeion is engaged in a pilot program at fitness clubs in New York and San Francisco that changes the business model for New Leaf, said CEO Gregg Lehman in an interview with the Star Tribune.
The pilot program is testing whether Angeion should bring its own metabolic specialists and equipment into fitness clubs to handle the assessments, rather than train personnel inside the fitness clubs, after clubs purchase the equipment.
“We think this new system will allow us to scale and grow the business much quicker,” Lehman said.
Here’s how the entire process works: Angeion sends its own metabolic specialists with the company’s equipment into the fitness clubs. Angeion pays a referral fee to personal trainers to send their clients in for the assessment. Angeion gives the data back to the individual and their personal trainer. The trainer then develops a customized exercise program for that individual, Lehman said. The cost of an assessment could range from $150 to $250.
Fitness clubs will still have the option of purchasing the equipment, but it won’t be a requirement.
The success of the program will be determined by increased revenue, Lehman said. Angeion’s board will take a look at the results no later than the end of October, he said.
Angeion’s stock price was flat at $4.32 a share on Friday.
Check out the full interview with Angeion's CEO in this Sunday's business section.