The Company develops and markets novel therapies for chronic health conditions employing neurostimulation and digital medicine. The Company has two primary commercial products. Quell® is an over-the-counter wearable neurostimulation device for treating chronic pain. DPNCheck® is a point-of-care test that provides accurate and cost-effective screening, diagnosis and monitoring of diabetic peripheral neuropathy (DPN).
GSK Collaboration Update
The Company and
Q3 2018 Highlights:
- U.S. launch of Quell 2.0 commenced in
September 2018, in line with previous guidance. This next generation wearable technology is expected to expand Quell adoption while delivering improved gross margins.
- DPNCheck delivered a third consecutive quarter with sales in excess of
- Total revenue of
$3.7 millionincreased 3.4% from $3.5 millionin Q3 2017.
- Quell revenue of
$2.2 milliondeclined 13.9% from $2.6 millionQ3 2017 due to reduced advertising spending. Following launch of Quell 2.0, advertising is expected to return higher levels.
- DPNCheck revenue of
$1.1 millionwas up 76% from $0.6 millionin Q3 2017. The increase was attributed to sales outside the U.S.
- Quell revenue of
- Gross margin was 50.3%, a gain of 7.8 percentage points from 42.5% in Q3 2017. Favorable product mix combined with improved Quell distribution efficiency and Quell 2.0 launch contributed to the margin.
- Operating expenses were reduced to
$4.5 millionfrom $5.0 millionin Q3 2017. Quell advertising spending in Q3 2018 was down by $0.6 millionor 29% from Q3 2017.
- Net collaboration income from the GSK collaboration was
- Net income of
$1.1 million( $0.15per share) compared with a net loss of $3.5 million( ($3.11)per share) in Q3 2017.
- Cash at
September 30, 2018totaled $7.5 million.
"Launch of Quell 2.0 was a significant achievement,” said
Company to Host Live Conference Call and Webcast
NeuroMetrix is a commercial stage, innovation driven healthcare company combining neurostimulation and digital medicine to address chronic health conditions including chronic pain, sleep disorders, and diabetes. The Company has two primary products. Quell is an over-the-counter wearable therapeutic device for chronic pain. DPNCheck is a rapid point-of-care test for diabetic neuropathy which is the most common long-term complication of Type 2 diabetes. For more information, please visit www.NeuroMetrix.com.
Safe Harbor Statement
The statements contained in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the company’s or management’s expectations regarding the business, as well as events that could have a meaningful impact on the company’s revenues and cash resources. While the company believes the forward-looking statements contained in this press release are accurate, there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including, without limitation, estimates of future performance, and the ability to successfully develop, receive regulatory clearance, commercialize and achieve market acceptance for any products. There can be no assurance that future developments will be those that the company has anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in the company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well as other documents that may be filed from time to time with the
SVP and Chief Financial Officer
Statements of Operations
|Nine Months Ended
|Cost of revenues||1,821,111||2,040,997||6,726,675||7,378,001|
|Research and development||1,178,468||840,577||4,074,895||2,621,445|
|Sales and marketing||2,334,340||2,919,504||7,039,933||8,436,497|
|General and administrative||1,015,489||1,258,466||3,990,266||3,925,595|
|Total operating expenses||4,528,297||5,018,547||15,105,094||14,983,537|
|Loss from operations||(2,682,628||)||(3,512,864||)||(9,470,431||)||(10,198,677||)|
|Total other income||3,768,686||3,881||12,296,669||219,498|
|Net income (loss)||$||1,086,058||$||(3,508,983||)||$||2,826,238||$||(9,979,179||)|
Condensed Balance Sheets
|Cash and cash equivalents||$||7,530,598||$||4,043,681|
|Other current assets||5,041,005||5,059,693|
|Total liabilities and stockholders’ equity||$||13,038,326||$||9,599,224|
Source: NeuroMetrix, Inc.