NeuroMetrix Reports Q3 2018 Financial Results
October 17 2018 - 7:00AM
NeuroMetrix, Inc. (Nasdaq: NURO), today reported financial and
business highlights for the quarter ended September 30, 2018.
The Company develops and markets novel therapies for chronic
health conditions employing neurostimulation and digital medicine.
The Company has two primary commercial products. Quell® is an
over-the-counter wearable neurostimulation device for treating
chronic pain. DPNCheck® is a point-of-care test that provides
accurate and cost-effective screening, diagnosis and monitoring of
diabetic peripheral neuropathy (DPN).
GSK Collaboration Update
The Company and GlaxoSmithKline (NYSE: GSK) are parties to a
$26.5 million strategic collaboration to further develop and expand
access to Quell technology with defined milestones. The
parties also committed to co-fund development of Quell technology
starting in 2019. During the third quarter of 2018, the
Company achieved a $3.8 million development milestone which
increased the total collaboration payments to $12.7 million during
2018.
Q3 2018 Highlights:
- U.S. launch of Quell 2.0 commenced in September 2018, in line
with previous guidance. This next generation wearable technology is
expected to expand Quell adoption while delivering improved gross
margins.
- DPNCheck delivered a third consecutive quarter with sales in
excess of $1 million.
- Total revenue of $3.7 million increased 3.4% from $3.5 million
in Q3 2017.
- Quell revenue of $2.2 million declined 13.9% from $2.6 million
Q3 2017 due to reduced advertising spending. Following launch of
Quell 2.0, advertising is expected to return higher levels.
- DPNCheck revenue of $1.1 million was up 76% from $0.6 million
in Q3 2017. The increase was attributed to sales outside the
U.S.
- Gross margin was 50.3%, a gain of 7.8 percentage points from
42.5% in Q3 2017. Favorable product mix combined with improved
Quell distribution efficiency and Quell 2.0 launch contributed to
the margin.
- Operating expenses were reduced to $4.5 million from $5.0
million in Q3 2017. Quell advertising spending in Q3 2018 was down
by $0.6 million or 29% from Q3 2017.
- Net collaboration income from the GSK collaboration was $3.8
million.
- Net income of $1.1 million ($0.15 per share) compared with a
net loss of $3.5 million (($3.11) per share) in Q3 2017.
- Cash at September 30, 2018 totaled $7.5 million.
"Launch of Quell 2.0 was a significant achievement,” said Shai
N. Gozani, M.D., Ph.D., President and Chief Executive Officer of
NeuroMetrix. “Meeting our internal schedule was the culmination of
a two-year development program and reflects our commitment to
chronic pain sufferers. Also, DPNCheck performance throughout 2018
has been an encouraging indicator of its potential to impact the
detection and management of diabetic neuropathy, which is the most
common complication of
diabetes.”
Company to Host Live Conference Call and
Webcast
NeuroMetrix management will host a conference call today,
October 17, 2018 at 8:00 a.m., Eastern Time. To access the
call in the United States, dial 844-787-0799 and use the
confirmation code 2189578. Internationally, the conference call may
be accessed by dialing (661) 378-9630 and using the same
confirmation code. The call will also be webcast and will be
accessible from the Company's website at http://www.NeuroMetrix.com
under the "Investor Relations" tab. A replay of the conference call
will be available starting two hours after the call by dialing
855-859-2056, domestically and 800-585-8367, internationally. The
confirmation code to access the replay is 2189578. The replay will
be available for one week after the conference call.
About NeuroMetrix
NeuroMetrix is a commercial stage, innovation driven
healthcare company combining neurostimulation and digital medicine
to address chronic health conditions including chronic pain, sleep
disorders, and diabetes. The Company has two primary products.
Quell is an over-the-counter wearable therapeutic device for
chronic pain. DPNCheck is a rapid point-of-care test for
diabetic neuropathy which is the most common long-term complication
of Type 2 diabetes. For more information, please
visit www.NeuroMetrix.com.
Safe Harbor Statement
The statements contained in this press release include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, without
limitation, statements regarding the company’s or management’s
expectations regarding the business, as well as events that could
have a meaningful impact on the company’s revenues and cash
resources. While the company believes the forward-looking
statements contained in this press release are accurate, there are
a number of factors that could cause actual events or results to
differ materially from those indicated by such forward-looking
statements, including, without limitation, estimates of future
performance, and the ability to successfully develop, receive
regulatory clearance, commercialize and achieve market acceptance
for any products. There can be no assurance that future
developments will be those that the company has anticipated. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors including those risks,
uncertainties and factors referred to in the company’s most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well
as other documents that may be filed from time to time with the
Securities and Exchange Commission or otherwise made public. The
company is providing the information in this press release only as
of the date hereof, and expressly disclaims any intent or
obligation to update the information included in this press release
or revise any forward-looking statements.
Source: NeuroMetrix, Inc.
Thomas T. HigginsSVP and Chief Financial
Officer781-314-2761neurometrix.ir@neurometrix.com
NeuroMetrix,
Inc.Statements of
Operations(Unaudited)
|
Quarters Ended September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
|
2017 |
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
3,666,780 |
|
|
$ |
3,546,680 |
|
|
$ |
12,361,338 |
|
|
$ |
12,162,861 |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
1,821,111 |
|
|
|
2,040,997 |
|
|
6,726,675 |
|
|
7,378,001 |
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
1,845,669 |
|
|
|
1,505,683 |
|
|
5,634,663 |
|
|
4,784,860 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
1,178,468 |
|
|
|
840,577 |
|
|
4,074,895 |
|
|
2,621,445 |
|
Sales and
marketing |
2,334,340 |
|
|
|
2,919,504 |
|
|
7,039,933 |
|
|
8,436,497 |
|
General
and administrative |
1,015,489 |
|
|
|
1,258,466 |
|
|
3,990,266 |
|
|
3,925,595 |
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses |
4,528,297 |
|
|
|
5,018,547 |
|
|
15,105,094 |
|
|
14,983,537 |
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(2,682,628 |
) |
|
|
(3,512,864 |
) |
|
|
(9,470,431 |
) |
|
|
(10,198,677 |
) |
|
|
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
|
|
Collaboration income |
3,750,000 |
|
|
|
— |
|
|
12,255,704 |
|
|
— |
|
Other
income |
18,686 |
|
|
|
3,881 |
|
|
40,965 |
|
|
219,498 |
|
|
|
|
|
|
|
|
|
|
|
Total
other income |
3,768,686 |
|
|
|
3,881 |
|
|
12,296,669 |
|
|
219,498 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
1,086,058 |
|
|
$ |
(3,508,983 |
) |
|
$ |
2,826,238 |
|
|
$ |
(9,979,179 |
) |
|
NeuroMetrix, Inc.Condensed Balance
Sheets(Unaudited)
|
|
September
30, 2018 |
|
|
December 31,
2017 |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
7,530,598 |
|
|
$ |
4,043,681 |
Other current assets |
|
|
5,041,005 |
|
|
|
5,059,693 |
Noncurrent assets |
|
|
466,723 |
|
|
|
495,850 |
Total assets |
|
$ |
13,038,326 |
|
|
$ |
9,599,224 |
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
4,178,601 |
|
|
$ |
4,581,835 |
Stockholders’ equity |
|
|
8,859,725 |
|
|
|
5,017,389 |
Total liabilities and stockholders’ equity |
|
$ |
13,038,326 |
|
|
$ |
9,599,224 |
NeuroMetrix (NASDAQ:NURO)
Historical Stock Chart
From Mar 2024 to Apr 2024
NeuroMetrix (NASDAQ:NURO)
Historical Stock Chart
From Apr 2023 to Apr 2024