REG - Crystal Amber Fund - Update on Morphic Medical Inc.

Crystal Amber FundAnnouncement

16/02/2026 16:15

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RNS Number : 2226T  Crystal Amber Fund Limited  16 February 2026

16 February 2026

 

Crystal Amber Fund Limited

("Crystal Amber" or the "Fund")

 

Update on Morphic Medical, Inc.

 

The Board of Crystal Amber is pleased to provide an update on Morphic Medical
Inc. ("MMI") and further investment.

 

Update on MMI

 

Morphic Medical Inc. owns Reset®, the world's first medical device focused on
treating the root cause of obesity and type 2 diabetes. Following MMI
receiving the European CE mark and UK regulatory approval for its Reset®
system, patients have had procedures in both the UK and India. MMI has also
signed distribution agreements in Spain, Belgium, Netherlands, Czech Republic
and the Middle East. Patient enrolment for its US Step-1 study is ongoing and
expected to complete in between late 2027 and early 2028. FDA approval for the
Reset® device in the US is expected in either 2028 or 2029.

 

Patient recruitment in the USA for the pivotal FDA study for Reset® is
accelerating. Last month, two further procedures were carried out in Miami and
seven patients are scheduled for February 2026. The FDA has also recently
agreed to a change to the study protocol, which will speed up patient
recruitment.

 

Due to the data collected so far from over 200 studies on safety, efficacy and
durability, in Germany, NUB status (the reimbursement and pricing of
innovative in-patient drugs and devices) has been awarded following a rigorous
assessment by the German hospital and reimbursement system and reflects
recognition that Reset® is supported by a substantial and growing body of
clinical evidence and research, demonstrating both clinical relevance and
therapeutic potential. The designation enables hospitals in Germany to apply
for supplementary reimbursement for the use of Reset® while broader
reimbursement pathways in other countries continue to be evaluated.

 

To satisfy future demand for Reset®, MMI has now agreed terms with its
contract manufacturers to start manufacturing Reset® at scale.

 

MMI remains in discussions with several potential investors, including some
large, multi-national medical device companies. Whilst there can be no
certainty at this stage, the directors of MMI believe that any such investment
would be at a premium to the Company's current carrying value of MMI.
Recently, MMI presented at MedInvest, New York and has received further
expressions of interest.

 

Further investment

 

As the Company announced on 14 November 2025, recognising MMI's potential to
deliver substantial additional shareholder value, the Board believes that the
optimal time to seek to realise its investment in MMI would be following FDA
approval and access to the US market. Consequently, the Board believes that
the Fund should continue to actively manage its investment in MMI until then.
Accordingly, further to the announcement of 18 July 2025 regarding investment
so far in 2025 (which at that point was $6 million rather than $5.15 million
as previously stated), the Company has invested a further US$8 million
(approximately £5.9 million at current exchange rates) in MMI at US$0.48 per
share in three tranches since 18 July 2025. The Fund now holds an aggregate of
418,944,800 preferred and common shares in MMI, representing approximately
97.8% of its aggregate preferred and common issued share capital. The Fund
will consider supporting further investment alongside cornerstone investors if
appropriate.

 

Change of strategy and manager

 

On 14 November 2025, a proposed change of strategy and investment manager (the
"Proposals") was announced. Work on the Proposals is advanced and a circular
with further details of the Proposals and notice of an Extraordinary General
Meeting is expected to be sent to shareholders later this month.

 

Further update announcements will be provided as soon as appropriate.

 

 

For further enquiries please contact:

 

Crystal Amber Fund Limited

Chris Waldron (Chairman)

Tel: 01481 742 742

www.crystalamber.com (http://www.crystalamber.com)

 

Crystal Amber Advisers (UK) LLP - Investment Adviser

Richard Bernstein

Tel: 020 7478 9080

 

Allenby Capital Limited - Nominated Adviser

Jeremy Porter/ Ashur Joseph

Tel: 020 3328 5656

 

Winterflood Investment Trusts - Broker

Joe Winkley/Neil Langford

Tel: 020 3100 0160

 

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