Submits IDE for atherectomy clinical trial with
DABRA excimer laser system
Conference call begins at 4:30 p.m. Eastern
time today
Ra Medical Systems, Inc. (NYSE:
RMED), a medical device company focusing on commercializing excimer
laser systems to treat vascular and dermatological diseases,
reports financial results for the three months ended March 31, 2019
and provides a business update.
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the full release here:
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Recent Operational Highlights
- Submitted an Investigational Device
Exemption (IDE) to the U.S. Food and Drug Administration (FDA) for
a clinical trial to evaluate the safety and efficacy of the DABRA
excimer laser system in atherectomy procedures.
- Signed 16 new DABRA usage agreements
during the first quarter of 2019, increasing the total number of
agreements to 69 as of March 31, 2019, at varying volumes of
purchases
- Announced two study results from Athar
Ansari, MD, Director of the California Heart & Vascular Clinic
and Ashok Kondur, MD, Chair, Division of Cardiology, Garden City
Hospital/MSU demonstrating 94% and 98% success rates, respectively,
in treating peripheral artery disease (PAD) patients with the DABRA
excimer laser system.
“I’m pleased to report that in the first quarter we completed
the validation of our upgraded manufacturing process to accommodate
catheter production at scale and commenced our new commercial
strategy,” said Dean Irwin, CEO of Ra Medical. “We also have
shifted our commercial focus toward developing long-term customer
relationships. Among various actions underway, we are reevaluating
the profiles and locations of our current sales personnel,
upgrading our sales organization with the hiring of new, highly
qualified field sales representatives and providing our reps with
more comprehensive training in the use of DABRA.”
First Quarter Financial Highlights
Net revenue for the first quarter of 2019 was $1.7 million,
which consisted of product sales of $0.9 million and service and
other revenue of $0.8 million. This compares with net revenue of
$1.0 million for the first quarter of 2018, which consisted of
product sales of $0.2 million and service and other revenue of $0.8
million.
Net revenue from the vascular segment was $0.5 million in the
first quarter of 2019, an increase from $0.1 million for the first
quarter of 2018. Net revenue from the dermatology segment was $1.3
million in the first quarter of 2019, an increase from $0.9 million
for the first quarter of 2018.
Total cost of revenue for the first quarter of 2019 was $1.9
million, compared with $0.7 million for the first quarter of
2018.
Selling, general and administrative expenses for the first
quarter of 2019 were $13.2 million, which included $6.3 million in
stock-based compensation compared with $2.6 million for the first
quarter of 2018, which included $0.4 million in stock-based
compensation. Research and development expenses for the first
quarter of 2019 were $1.5 million, which included $0.9 million in
stock-based compensation, compared with $0.3 million for the first
quarter of 2018, which included $0.1 million in stock-based
compensation.
The net loss for the first quarter of 2019 was $14.7 million, or
$1.16 per share, compared with a net loss for the first quarter of
2018 of $2.7 million, or $0.34 per share.
Adjusted EBITDA for the first quarter of 2019 was negative $6.8
million, compared with adjusted EBITDA of negative $2.1 million for
the first quarter of 2018. Adjusted EBITDA is a non-GAAP measure
presented as net loss before depreciation and amortization expense,
interest income, interest expense, income taxes and stock-based
compensation expense. For additional information regarding the
non-GAAP financial measures discussed in this news release, please
see "Non-GAAP Reconciliations" below.
Ra Medical reported cash and cash equivalents of $55.1 million
as of March 31, 2019.
Conference Call and Webcast
Ra Medical will hold a conference call and audio webcast to
discuss this announcement and answer questions at 4:30 p.m. Eastern
time today. The conference call dial-in numbers are 866-789-3291
for domestic callers and 409-937-8946 for international callers,
and the passcode is 9486818. A live webcast of the call will be
available on the Investors section of www.ramed.com.
A recording of the call will be available for 48 hours beginning
approximately two hours after the completion of the call by dialing
855-859-2056 for domestic callers or 404-537-3406 for international
callers. Please use the passcode 9486818 to access the recording. A
webcast replay will be available on the Investors section of
www.ramed.com for 30 days, beginning approximately two hours after
the completion of the call.
About Ra Medical Systems
Ra Medical Systems commercializes excimer lasers and catheters
for the treatment of vascular and dermatological diseases. In May
2017, the DABRA laser system and single-use DABRA catheter received
FDA 510(k) clearance in the U.S. as a device for crossing chronic
total occlusions, or CTOs, in patients with symptomatic
infrainguinal lower extremity vascular disease with an intended use
for ablating a channel in occlusive peripheral vascular disease.
Pharos excimer laser system is FDA-cleared and is used as a tool in
the treatment of psoriasis, vitiligo, atopic dermatitis, and
leukoderma. DABRA and Pharos are both based on Ra Medical’s core
excimer laser technology platform and deploy similar mechanisms of
action. Ra Medical manufactures DABRA and Pharos excimer lasers and
catheters in a 32,000-square-foot facility located in Carlsbad,
California. The vertically integrated facility is ISO 13485
certified and is licensed by the state of California to manufacture
sterile, single-use catheters in controlled environments.
Non-GAAP Financial Measures
Ra Medical has presented certain financial information in
accordance with U.S. GAAP and also on a non-GAAP basis for the
three-month periods ended March 31, 2019 and 2018. EBITDA and
Adjusted EBITDA are performance measures that provide supplemental
information management believes is useful to analysts and investors
to evaluate Ra Medical’s ongoing results of operations, when
considered alongside other GAAP measures. These measures are
intended to aid investors in better understanding Ra Medical’s
current financial performance and prospects for the future as seen
through the eyes of management. Management uses non-GAAP measures
to compare the company’s performance relative to forecasts and
strategic plans and to benchmark the company’s performance
externally against competitors. Management believes that these
non-GAAP financial measures facilitate comparisons with Ra
Medical’s historical results and with the results of peer companies
who present similar measures (although other companies may define
non-GAAP measures differently than we define them, even when
similar terms are used to identify such measures). Non-GAAP
information is not prepared under a comprehensive set of accounting
rules and should only be used to supplement an understanding of the
company’s operating results as reported under U.S. GAAP. Ra Medical
encourages investors to carefully consider its results under GAAP,
as well as its supplemental non-GAAP information and the
reconciliation between these presentations, to more fully
understand its business. Reconciliations between GAAP and non-GAAP
operating results are presented in the accompanying tables of this
release.
Investors are encouraged to review the related GAAP financial
measures and the reconciliation of
these non-GAAP financial measures to their most directly
comparable GAAP financial measures, and not to rely on any single
financial measure to evaluate our business. Ra Medical defines
EBITDA as our GAAP net loss as adjusted to exclude depreciation,
interest income, interest expense, income tax expense. Ra Medical
defines Adjusted EBITDA as our GAAP net loss as adjusted to exclude
depreciation, interest income, interest expense, income tax expense
and stock-based compensation.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements generally relate to future events
or Ra Medical’s future financial or operating performance. In some
cases, you can identify forward-looking statements because they
contain words such as “may,” “will,” “should,” “expects,” “plans,”
“anticipates,” “could,” “intends,” “target,” “projects,”
“contemplates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or the negative of these words or other similar terms or
expressions that concern Ra Medical’s future expectations,
strategy, plans or intentions. Forward-looking statements in this
press release include, but are not limited to, statements regarding
the future growth of Ra Medical’s business; changes in business
strategy, including our expectations with respect to upgrading our
sales personnel and developing long-term customer relationships;
hiring expectations; the expected timing of the results of our
atherectomy study; and market expectations. Ra Medical’s
expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected or implied by such forward-looking
statements. The potential risks and uncertainties which contribute
to the uncertain nature of these statements include, among others,
challenges inherent in developing , manufacturing, launching,
marketing, and selling new products; risks associated with
acceptance of DABRA and Pharos and procedures performed using such
devices by physicians, payors, and other third parties; development
and acceptance of new products or product enhancements; clinical
and statistical verification of the benefits achieved via the use
of Ra Medical’s products; the results from our clinical trials,
which may not support intended indications or may require Ra
Medical to conduct additional clinical trials or modify ongoing
clinical trials; challenges related to commencement , patient
enrollment, completion, an analysis of clinical trials; Ra
Medical’s ability to manage operating expenses; Ra Medical’s
ability to effectively manage inventory; Ra Medical’s ability to
recruit and retain management and key personnel; Ra Medical’s need
to comply with complex and evolving laws and regulations; intense
and increasing competition and consolidation in Ra Medical’s
industry; the impact of rapid technological change; costs and
adverse results in any ongoing or future legal proceedings; adverse
outcome of regulatory inspections; and the other risks and
uncertainties described in Ra Medical’s news releases and filings
with the Securities and Exchange Commission. Information on these
and additional risks, uncertainties, and other information
affecting Ra Medical’s business and operating results is contained
in Ra Medical’s Annual Report on Form 10-K for the year ended
December 31, 2018 and in its other filings with the Securities and
Exchange Commission. Additional information will also be set forth
in Ra Medical’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2019 to be filed with the Securities and Exchange
Commission. The forward-looking statements in this press release
are based on information available to Ra Medical as of the date
hereof, and Ra Medical disclaims any obligation to update any
forward-looking statements, except as required by law.
Ra Medical investors and others should note that we announce
material information to the public about the company through a
variety of means, including our website (www.ramed.com), our
investor relations website (https://ir.ramed.com/), press releases,
SEC filings, and public conference calls in order to achieve broad,
non-exclusionary distribution of information to the public and to
comply with our disclosure obligations under Regulation FD. We
encourage our investors and others to monitor and review the
information we make public in these locations as such information
could be deemed to be material information. Please note that this
list may be updated from time to time.
Ra Medical Systems, Inc.
Condensed Balance Sheets
(Unaudited)
(in thousands)
March 31,
2019
December 31,
2018
ASSETS Current Assets Cash and cash equivalents $
55,129 $ 64,315 Accounts receivable, net 1,292 1,320 Inventories
2,217 2,097 Prepaid expenses and other current assets 1,815
1,501 Total current assets 60,453 69,233 Property and
equipment, net 5,530 4,757 Operating lease right-of-use-assets
3,084 — Other non-current assets 213 45
TOTAL
ASSETS $ 69,280 $ 74,035
LIABILITIES AND STOCKHOLDERS’
EQUITY Current Liabilities Accounts payable $ 1,411 $
1,125 Accrued expenses 1,061 2,809 Current portion of deferred
revenue 1,954 1,723 Current portion of equipment financing 367 293
Current portion of operating lease liabilities 292 —
Total current liabilities 5,085 5,950 Deferred revenue 943 767
Equipment financing 594 557 Operating lease liabilities 2,861 —
Other liabilities — 56 Total liabilities 9,483
7,330
Total stockholders’ equity 59,797
66,705
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $
69,280 $ 74,035
Ra Medical Systems, Inc.
Condensed Statements of
Operations
(Unaudited)
(in thousands, except per share
data)
Three Months Ended March 31, 2019
2018 Net revenue Product sales $ 894 $ 235
Service and other 854 734 Total net revenue
1,748 969
Cost of revenue Product sales 1,395 342 Service
and other 547 394 Total cost of revenue 1,942
736
Gross (loss) profit (194 ) 233
Operating expenses
Selling, general and administrative 13,229 2,639 Research and
development 1,531 286 Total operating expenses
14,760 2,925
Operating loss (14,954 )
(2,692 )
Other income (expense), net 280 (1 )
Loss before income tax expense (14,674 ) (2,693 )
Income
tax expense — —
Net loss $ (14,674
) $ (2,693 )
Basic and diluted net loss per share $ (1.16 )
$ (0.34 )
Basic and diluted weighted average common shares
outstanding
12,693 7,938
Ra Medical Systems, Inc.
Non-GAAP Reconciliations
(in thousands)
(unaudited)
Three Months Ended March 31, 2019
2018 Statement of Operations Data: Net loss $ (14,674
) $ (2,693 ) Depreciation and amortization 384 96 Interest income
(328 ) — Interest expense 48 1 Income tax expense — —
EBITDA (14,570 ) (2,596 ) Stock-based compensation 7,745
524 Adjusted EBITDA $ (6,825 ) $ (2,072 )
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190513005799/en/
At the Company:Jeffrey
KrawsPresident, Ra Medical Systems760-707-7516jkraws@ramed.com
Investors:LHA Investor
RelationsJody Cain / Kevin McCabe310-691-7100jcain@lhai.com /
kmccabe@lhai.com
Media:KCSA Strategic
CommunicationsCaitlin Kasunich / Lisa Lipson212-896-1241 /
508-843-6428ckasunich@kcsa.com / llipson@kcsa.com
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