Medical device company maintains growth momentum in Q2/22
2/22 and 1/22 electroCore Inc. revenue is up quarter-over-quarter and year-over-year, respectively, and the upward trend is expected to continue until at the end of 2022, noted a report by HC Wainwright & Co.
Commercial-stage ElectroCore Inc. (ECOR:NASDAQ) continued its trend of revenue growth in Q2/22, as reported by HC Wainwright & Co. analyst Dr. Swayampakula Ramakanth.
The bioelectronic medicine company is advancing gammaCore, its non-invasive vagus nerve stimulator, for the treatment of multiple neurological and metabolic conditions.
Currently, the device is approved (depending on the jurisdiction) for:
- primary, cluster and migraine headaches
- migraine prevention
- paroxysmal hemicrania
- continuous hemicrania
The product has regulatory clearance in the United States, Canada, Australia, United Kingdom, and several European countries, among others.
Ramakanth reviewed and commented on the financial figures just released by electroCore. He also shared his revenue expectations for the New Jersey-based company in the near and long term.
He pointed out that electroCore’s Q2/22 revenue is expected to be $2.1 million ($2.1 million), up 11% from $1.9 million in the prior quarter. H1/22 revenue is also up 60% year-over-year.
Approximately $0.5M of the company’s total Q2/22 revenue comes from US commercial sales, and this amount is 68% higher than Q1/22 revenue of $0.3M $. Business in the United States is strong and it looks like it will remain so at least until the end of 2022, Ramakanth noted. It appears that the company’s concerted efforts to expand gammaCore adoption are paying off.
“The continued growth of this channel should help it become a significant source of revenue over the next few years,” Ramakanth noted. “We currently expect US business to grow from $7 million in 2022 to $83 million in 2030.”
A recurring customer in the United States is the Federal Departments of Veterans Affairs and Defense. Sales to them in Q2/22 of $1.2M are 54% higher than the prior quarter.
“This continued growth in VA/DoD channels bodes well for continued revenue growth beyond 2022,” Ramakanth commented.
Q2/22 revenue from outside the US also increased quarter over quarter, from $0.3M to $0.5M, an increase of 53%. Ramakanth expects electroCore’s non-US revenue to reach $17 million by the end of 2030, up from $2 million this year.
Looking at total 2022 revenue, Ramakanth believes the medical device company will end the year strong, given its track record of strong third and fourth quarters. Specifically, it projects total revenue of $8.9 million for 2022, a 64% growth from the company’s revenue of $5.5 million in 2021.
As for electroCore’s balance sheet at the end of Q2/22, it is solid, containing $26.6 million in cash and cash equivalents. These funds are sufficient to support operations until Q1/23, allegedly Ramakanth.
HC Wainwright & Co. has a buy rating and price target of $2.75 per share on electroCore. Its current price, by comparison, is around $0.64.
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Disclosures for HC Wainwright & Co., ElectroCore Inc., July 13, 2022
HC Wainwright & Co, LLC (the “Company”) is a member of FINRA and SIPC and a registered US broker-dealer.
I, Swayampakula Ramakanth, Ph.D., Arthur He, Ph.D., and Sean Lee certify that 1) all opinions expressed in this report accurately reflect my personal opinions on all securities or issuers discussed; and 2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendation or opinions expressed in this research report; and 3) neither I nor any member of my household are officers, directors or members of the advisory board of these companies.
None of the research analysts or the research analyst’s household has any financial interest in the securities of electroCore, Inc. (including, without limitation, any option, right, mandate, future position, long or short).
As of June 30, 2022, neither the company nor its affiliates beneficially owns 1% or more of any class of common equity securities of electroCore, Inc. Neither the research analyst nor the company has any knowledge or have reason to be aware of another material conflict of interest at the time of publication of this research report.
The research analyst primarily responsible for preparing the report does not receive compensation based on specific investment banking services or transactions, but is compensated based on factors such as total revenue and firm profitability , a substantial portion of which comes from investment banking. services.
The company or its affiliates have received compensation from electroCore, Inc. for non-investment banking services within the past 12 months.
The company or its affiliates have not received compensation from electroCore, Inc. for investment banking services in the preceding twelve months, but will seek compensation from the companies mentioned in this report for investment banking services. investment within three months of publication of the research report.
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