Neovasc Provides Update on Second Quarter Results
July 06 2020 - 9:16AM
via NEWMEDIAWIRE -- Neovasc, Inc. (NASDAQ, TSX:
NVCN) today announced preliminary revenue results for the second
quarter of 2020. Revenue for the quarter ended June 30, 2020 was
approximately $295,000. Revenues were negatively impacted by a
reduction in Reducer procedures that began in mid-March and
persisted through early June. Despite a marked slowdown in the
number of implants and related revenue from the Reducer because of
COVID-19, the Company has seen a significant recovery culminating
in the highest monthly number of implants in the history of the
Company during June.
“We are encouraged to see Reducer cases among the
earliest elective procedures to resume in Europe, supporting our
thesis of strong underlying demand,” commented Fred Colen,
President and Chief Executive Officer of Neovasc. “We are gratified
to see a return to growth following the second quarter slowdown.
Looking forward, provided the impact from Covid-19 does not worsen
again, we anticipate that the positive trend in June will continue
into Q3.”
“Despite the impact of Covid-19, we achieved our
original Q2 forecast number of implants in Germany, and saw record
worldwide implants in the month of June,” stated Bill Little, Chief
Operating Officer of Neovasc. Other markets in Europe also appear
to be recovering well, most notably Italy, Austria, Switzerland and
the Netherlands. He continued, “We are gratified to see a return to
growth following the Covid-19 related slowdown in the early part of
the quarter. We continue to see expansion in the number of
hospitals implanting Reducer driven by encouraging clinical data
and society guidelines supporting Reducer therapy for patients
suffering from the debilitating effects of refractory
angina.”
Neovasc will report financial results for the
quarter ended June 30, 2020 after the market close on August 6,
2020. Neovasc Chief Executive Officer Fred Colen and Chief
Financial Officer Chris Clark will host a conference call to review
the company’s results at 4:30 PM Eastern Time.
Interested parties may access the conference call
by dialing [(888) 204-4368 or (856) 344-9299
(International)]. Participants wishing to join the call via
webcast should use the link posted on the investor relations
section of the Neovasc website
at https://www.neovasc.com/investors/
A replay of the webcast will be available
approximately 30 minutes after the conclusion of the call using the
link on the Neovasc website.
All figures reported above with respect to the
quarter ended June 30, 2020 are preliminary and are unaudited and
subject to change and adjustment as the Company prepares its
consolidated financial statements for the quarter ended June 30,
2020. Accordingly, investors are cautioned not to place undue
reliance on the foregoing information. The Company does not intend
to provide preliminary results in the future. The preliminary
results provided in this news release constitute "forward-looking
information" and "forward-looking statements" within the meaning of
applicable Canadian and U.S. securities laws, are based on several
assumptions and are subject to a number of risks and uncertainties.
Actual results may differ materially. See "Forward-looking
Statement Disclaimer".
About Neovasc Inc.
Neovasc is a specialty medical device company that
develops, manufactures and markets products for the rapidly growing
cardiovascular marketplace. The Company is a leader in the
development of minimally invasive transcatheter mitral valve
replacement technologies, and minimally invasive devices for the
treatment of refractory angina. Its products include the Neovasc
Reducer™, for the treatment of refractory angina, which is not
currently commercially available in the United States (2 U.S.
patients have been treated under Compassionate Use) and has been
commercially available in Europe since 2015, and Tiara™, for the
transcatheter treatment of mitral valve disease, which is currently
under clinical investigation in the United States, Canada, Israel
and Europe. For more information, visit: www.neovasc.com.
Investors
Mike Cavanaugh
Westwicke/ICR
Phone: +1.646.877.9641
Mike.Cavanaugh@westwicke.com
Media
Sean Leous
Westwicke/ICR
Phone: +1.646.677.1839
Sean.Leous@icrinc.com
Forward-Looking Statement Disclaimer
Certain statements in this news release contain
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws that may not be based on historical fact.
When used herein, the words "expect", "anticipate", "estimate",
"may", "will", "should", "intend," "believe", and similar
expressions, are intended to identify forward-looking
statements. Forward-looking statements may involve, but are
not limited to, expectations as to the growing cardiovascular
marketplace, the resumption of Reducer implants and the frequency
of such resumption compared to other elective procedures and
expectations as to continued expansion and growth in revenue,
particularly in Germany and other European markets. Many factors
and assumptions could cause the Company's actual results,
performance or achievements to differ materially from those
expressed or implied by the forward-looking statements, including,
without limitation, risks relating to the possibility that the
Company's common shares may be delisted from the Nasdaq Capital
Market or the Toronto Stock Exchange, including Nasdaq's
discretionary public interest authority to apply more stringent
criteria for continued listing or suspend or delist securities,
which could affect their market price and liquidity; the
substantial doubt about the Company's ability to continue as a
going concern; risks relating to the Company's need for significant
additional future capital and the Company's ability to raise
additional funding; risks relating to the sale of a significant
number of common shares of the Company; risks relating to the
conversion or exercise of the Company's existing securities, which
may encourage short sales by third parties; risks relating to the
Company's conclusion that it did not have effective internal
control over financial reporting as at December 31, 2018 or 2019;
risks relating to the Company's Common Share price being volatile;
risks relating to the influence of significant shareholders of the
Company over the Company's business operations and share price;
risks relating to the Company's significant indebtedness, and its
effect on the Company's financial condition; risks relating to
claims by third parties alleging infringement of their intellectual
property rights; risks relating to lawsuits that the Company is
subject to, which could divert the Company's resources and result
in the payment of significant damages and other remedies; the
Company's ability to establish, maintain and defend intellectual
property rights in the Company's products; risks relating to
results from clinical trials of the Company's products, which may
be unfavorable or perceived as unfavorable; the Company's history
of losses and significant accumulated deficit; risks associated
with product liability claims, insurance and recalls; risks
relating to use of the Company's products in unapproved
circumstances, which could expose the Company to liabilities; risks
relating to competition in the medical device industry, including
the risk that one or more of the Company's competitors may develop
more effective or more affordable products; risks relating to the
Company's ability to achieve or maintain expected levels of market
acceptance for the Company's products, as well as the Company's
ability to successfully build its in-house sales capabilities or
secure third-party marketing or distribution partners; the
Company's ability to convince public payors and hospitals to
include the Company's products on their approved products lists;
risks relating to new legislation, new regulatory requirements and
the efforts of governmental and third-party payors to contain or
reduce the costs of healthcare; risks relating to increased
regulation, enforcement and inspections of participants in the
medical device industry, including frequent government
investigations into marketing and other business practices; risks
associated with the extensive regulation of the Company's products
and trials by governmental authorities, as well as the cost and
time delays associated therewith; risks associated with post-market
regulation of the Company's products; health and safety risks
associated with the Company's products and industry; risks
associated with the Company's manufacturing operations, including
the regulation of the Company's manufacturing processes by
governmental authorities and the availability of two critical
components of the Reducer; risk of animal disease associated with
the use of the Company's products; risks relating to the
manufacturing capacity of third-party manufacturers for the
Company's products, including risks of supply interruptions
impacting the Company's ability to manufacture its own products;
risks relating to the Company's dependence on limited products for
substantially all of the Company's current revenues; risks relating
to the Company's exposure to adverse movements in foreign currency
exchange rates; risks relating to the possibility that the Company
could lose its foreign private issuer status under U.S. federal
securities laws; risks relating to breaches of antibribery laws by
the Company's employees or agents; risks associated with future
changes in financial accounting standards and new accounting
pronouncements; risks relating to the Company's dependence upon key
personnel to achieve its business objectives; the Company's ability
to maintain strong relationships with physicians; risks relating to
the sufficiency of the Company's management systems and resources
in periods of significant growth; risks associated with
consolidation in the health care industry, including the downward
pressure on product pricing and the growing need to be selected by
larger customers in order to make sales to their members or
participants; risks relating to the Company's ability to
successfully identify and complete corporate transactions on
favorable terms or achieve anticipated synergies relating to any
acquisitions or alliances; anti-takeover provisions in the
Company's constating documents which could discourage a third party
from making a takeover bid beneficial to the Company's
shareholders; and risks relating to conflicts of interests among
the Company's officers and directors as a result of their
involvement with other issuers. These risk factors and others
relating to the Company are discussed in greater detail in the
"Risk Factors" section of the Company's Annual Report on Form 20-F
and in the Management's Discussion and Analysis for the three
months ended March 31, 2019 (copies of which may be obtained
at www.sedar.com or www.sec.gov). The Company has no
intention and undertakes no obligation to update or revise any
forward-looking statements beyond required periodic filings with
securities regulators, whether as a result of new information,
future events or otherwise, except as required by law.
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