NeuroMetrix Reports Q3 2020 Financial Results

10/22/20

WOBURN, Mass., Oct. 22, 2020 (GLOBE NEWSWIRE) -- NeuroMetrix, Inc. (Nasdaq: NURO) today reported financial and business highlights for the quarter ended September 30, 2020. The Company is a leading developer of neurostimulation-based medical devices that are used to diagnose and treat chronic health conditions.

Q3 2020 Highlights:

  • Revenue of $2.0 million was about level with $2.1 million in Q3 2019 reflecting an improving economic environment and broadening delivery of health care services. Gross margin on revenue was $1.5 million or 73.6%, up 17.4 percentage points from Q3 2019 gross margin of 56.2%.
  • DPNCheck® posted record quarterly sales in Q3 2020. The Medicare Advantage sector continued to be the main sales driver. The recently announced collaboration with Biomedix, Inc. contributed to DPNCheck sales.
  • The Journal of Diabetes Investigation published the results of a large study led by Dr. Hideki Kamiyo at the Aichi Medical University Hospital (Nagakute, Japan). The study demonstrated that DPNCheck® effectively determines the severity of diabetic peripheral neuropathy (DPN).
  • The Quell® Apple Watch® app was launched in September. This is the first smartwatch app for an over-the-counter pain relief device. It gives users the ability to control their Quell device and monitor pain relief from the wrist.
  • The first patients in an NIH-funded multi-site, randomized sham-controlled trial evaluating the efficacy of Quell in chemotherapy-induced peripheral neuropathy (CIPN) were enrolled. The study was designed and is being run by the University of Rochester School of Medicine and Dentistry.
  • A U.S. utility patent was issued covering Quell core technology that regulates electrical stimulation based on the user's body position.
  • A PAINWeek 2020 scientific presentation described a study of over 1,000 Quell users with chronic knee pain. The study demonstrated a clinically meaningful improvement in pain severity and functional impairment.

“We are encouraged by the recovery of commercial activity in the third quarter, particularly regarding DPNCheck,” said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. “Although business uncertainty remains, we are meeting our customers’ needs on a timely basis while strengthening our unique Quell technology, including its clinical foundation and intellectual property position. We remain on track to launch the next generation DPNCheck in 2021. Importantly, we are also making meaningful progress towards operating profitability.”

Financials:

In the third quarter of 2020, total revenues were $2.0 million, approximately flat with $2.1 million in the prior year period. Gross margin was $1.5 million versus $1.2 million in Q3 2019. The gross margin rate of 73.6% was an improvement of 17.4 percentage points from Q3 2019. Operating expenses were $1.8 million, a reduction of $0.8 million or 32.1%, from $2.6 million in Q3 2019. Net loss was $0.3 million compared to a net loss of $1.4 million in Q3 2019. Net cash usage from operations was $0.5 million compared with $1.7 million in Q3 2019. The Company ended the quarter with cash of $4.9 million.

About NeuroMetrix

NeuroMetrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices that are used throughout the world. The Company has three FDA cleared commercial products. DPNCheck® is a point-of-care test that is used to evaluate peripheral neuropathies. ADVANCE™ is a point-of-care device that provides nerve conduction studies as an aid in diagnosing and evaluating patients suspected of having focal or systemic neuropathies. Quell® 2.0 is a wearable, mobile app enabled, neurostimulation device indicated for symptomatic relief and management of chronic pain and is available over-the-counter. The Company maintains an active, industry-leading R&D program. For more information, visit www.NeuroMetrix.com.