KORU Medical Systems, Inc. Announces Preliminary Second Quarter 2023 Revenues and Provides Business, Outlook and Executive Updates
August 02 2023 - 5:15PM
Business Wire
KORU Medical Systems, Inc. (NASDAQ: KRMD) ("KORU Medical" or
the "Company"), a leading medical technology company focused on
the development, manufacturing, and commercialization of innovative
and easy-to-use specialty subcutaneous infusion solutions that
improve quality of life for patients, today announced preliminary
unaudited revenues for the second quarter 2023 and provided
business, outlook and executive updates.
The Company reported total net revenues for the second quarter
2023 of approximately $6.9 million, representing growth of
approximately 6% compared to the prior year period. Domestic Core
revenues increased approximately 8%, International Core revenues
increased approximately 17%, and Novel Therapies revenues declined
approximately 28% compared to the prior year period.
Full year 2023 net revenues are now expected to be between $31
million and $32.5 million, representing revenue growth in the range
of 11%-17% from the prior year. The Company's guidance for full
year 2023 has been updated to reflect a Q2 2023 decline in the U.S.
subcutaneous immunoglobulin market, resulting in a change of KORU
Medical’s outlook on underlying U.S core market growth assumption
from 10% to the mid-single digit range. In addition, the Company’s
guidance reflects a change in timing of Novel Therapies
revenues.
The Company's cash balance was $11.7 million as of June 30,
2023, and it is reaffirming an expected end of year cash balance
greater than $10.0 million and full year gross margin between
58-60%, and 60-62% exit rate.
"I am pleased our U.S. revenue growth significantly exceeded the
overall U.S. market in the quarter and we saw continued strength in
our international business," said Linda Tharby, KORU Medical's
President and CEO. "The foundation of our business remains sound,
and we see continued progress this quarter in Novel Therapies
collaborations, with a new deal being signed and the early
submission of a 510(k) for use on our FREEDOM60® Infusion System
with Hizentra® 50 mL prefilled syringes. Given the U.S. SCIg market
performance, and the timing of revenues from our Novel Therapies
collaborations, we are updating our guidance. We remain diligently
focused on delivering above-market revenue performance, advancing
our portfolio with our innovation efforts, and increasing the
number of drugs on our Freedom Infusion System. We remain committed
and on track to attain our Vision 2026 strategic goals, including
achieving +$60 million in revenues."
The Company also announces the appointment of Thomas (Tom) Adams
as Chief Financial Officer, effective August 1, 2023. Tom
previously served as the Company's interim Chief Financial Officer
from July 2022 to July 2023. Andy LaFrence resigned as the
Company's Chief Financial Officer for personal and family reasons
on July 27, 2023.
"Tom has played a critical role in the successful execution of
major strategic initiatives and milestones, and his contributions
as interim Chief Financial Officer were vital over the past year,"
said Linda Tharby, KORU Medical's President and CEO. "I am very
grateful for his partnership and know he will provide continued
strong leadership as he steps into his new role as Chief Financial
Officer. As CFO, Tom will continue driving our business towards our
Vision 2026 and implement our financial and operational strategy as
we forge ahead to the next phase of growth for KORU Medical.”
Mr. Adams joined the Company in November 2021 as its Vice
President of Financial Planning and Analysis and previously served
as the Company’s interim Chief Financial Officer from July 1, 2022
to July 10, 2023. Mr. Adams has over 20 years of finance and
accounting experience in the medical technology and pharmaceutical
sector. Prior to joining the Company, he worked with Integra Life
Sciences from 2011-2021, where throughout his tenure he served in
progressively senior finance roles. His last position at Integra
was as the Senior Director of Finance for a $500M commercial
business unit. Prior to Integra, Tom worked at Pfizer serving in
multiple senior level finance roles from 2000 to 2011. Early in his
career, he spent time with Ernst and Young in the audit function.
Mr. Adams has a Bachelor of Science in Accounting and Finance from
Ohio State University.
This financial information presented in this press release
includes calculations or figures that have been prepared internally
by management and have not been reviewed or audited by the
Company’s independent registered public accounting firm and is
subject to change. This financial information should not be viewed
as a substitute for full financial statements prepared in
accordance with GAAP and is not necessarily indicative of the
results to be achieved for any future periods. Complete second
quarter 2023 financial results will be announced on August 9,
2023.
About KORU Medical Systems
KORU Medical Systems develops, manufactures, and commercializes
innovative and easy-to-use subcutaneous drug delivery systems that
improve quality of life for patients around the world. The FREEDOM
Infusion System currently includes the FREEDOM60® and FreedomEdge®
Syringe Infusion Drivers, Precision Flow Rate Tubing™ and HIgh-Flo
Subcutaneous Safety Needle Sets™. These devices are used for
infusions administered in the home and alternate care settings. For
more information, please visit www.korumedical.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. All statements that are not
historical fact are forward-looking statements, including, but not
limited to, expected financial outlook and operating performance
for fiscal 2022. Forward-looking statements discuss the Company's
current expectations and projections relating to its financial
position, results of operations, plans, objectives, future
performance and business. Forward-looking statements can be
identified by words such as “outlook”, "guidance", "expect",
"goal", and "will". Actual results may differ materially from the
results predicted and reported results should not be considered as
an indication of future performance. The potential risks and
uncertainties that could cause actual results to differ from the
results predicted include, among others, uncertainties associated
with U.S. SCIg market growth, the shift to increased healthcare
delivery in the home, new patient diagnoses, customer ordering
patterns, global health crises, innovation and competition, labor
and supply price increases, inflationary impacts, labor supply, and
those risks and uncertainties included under the captions "Risk
Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2022 and our Quarterly Report on Form 10-Q for the
quarter ended March 31, 2023, which are on file with the SEC and
available on our website at www.korumedical.com/investors and on
the SEC website at www.sec.gov. All information provided in this
release is as of August 2,2023. Undue reliance should not be placed
on the forward-looking statements in this press release, which are
based on information available to us on the date hereof. We
undertake no duty to update this information unless required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230802035936/en/
Investor Contact: Greg Chodaczek 347-620-7010
investor@korumedical.com
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