NURO - Earnings call transcript Q2 2022

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Operator

Good morning and welcome to the NeuroMetrix Second Quarter 2022 Earnings Call. My name is Michelle and I will be your moderator on the call. On this call, the company may make statements, which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature that depend upon or refer to future events or conditions are forward-looking statements. Any forward-looking statements reflect current views of NeuroMetrix about future results of operations and other forward-looking information.

in on a because of result including set rely differ results important not issued those as release materially of forth should forward-looking actual statements, may factors, earlier You today. earnings the a number and including at the the heading under website company’s in company’s Investor uncertainties, Factors sec.gov. the with neurometrix.com factors periodic described Relations Please refer filings and on SEC the website to the risks the the SEC’s Risk available at on undertakes no on and to update NeuroMetrix disclosed intend does duty the information this not call. conference introduce now like NeuroMetrix I’d and President Chief Officer, to the Senior Vice Mr. Financial Thomas Higgins. Mr. Higgins?

Thomas Higgins

in you, review. call. background, of are for Both and Thank the impact By those a quarterly Dr. we with on a disorders health. neurological med-tech and the attending pain participating Shai and reduce Gozani, today’s syndromes of thanks mission individuals this and myself population of CEO to President way of Michelle and company you are on NeuroMetrix

our providing FDA prescription lower products are Alternatives do Our peripheral diagnostic competition. rapid of worldwide Quell our wearable treating the recently DPNCheck is neuropathy. not for for offering point-of-care therapeutic neurostimulation substitutes. authorization generation. of fibromyalgia. and but indicated leading It direct extremity not is opportunities is revenue address commercial a in no exist, Quell terms have invasive. They detection product pain. a market chronic over-the-counter achieved as of symptoms

line with razor model business being principal of blade is revenue profitability. Our the component aftermarket product

first increased X.X%. in revenues second with totaled revenue and year-on-year and for were changes that year-to-date. year by quarter revenue our year-to-date half $X.X overall and revenues second comparative obscure quarter, that million. for performance XX.X% growth $X.X by another posted the the DPNCheck, the and strong revenues XX.X% of the QX our the perspective quarterly of in down million and interesting leading product is first modest period During QX X.X% These were revenues half

deeper was year-to-date. into existing The little the generated new U.S. Advantage the was team. affected business and on a Japan China, XX.X% with customers, of distributors appears domestic situation. quarterly the early attributable our by is Most some Medicare that basis. growth COVID in somewhat and assess it where our primarily XX.X% quarter by Looking account is activity up to in business with difficult this the remaining to numbers, a particularly continue and combined these DPNCheck commercial adversely be second to DPNCheck performance It China markets

and PPV of of QX XX.X% Sales cost guided and to were a was DPNCheck a of adversely product we commercial XX profit one its recorded with by increase and addition return base. goods. outlies period for costs revenues when this OpEx will expenses by need spending million margin second There we QX increased secure expect spending investment limited our quarter payments, the these flow. in or Shai and $X.X of of will and devices. aspects Regarding higher. parts electronic or magnitude PPV aspects secure in our components margin margin million have XXXX better If in several our These include viable in premium profit Advantage to And and same our the parts. bang normal The rate is industry, of critical Along Quell, year-to-date. quarter X-month supply a affected for – XX%. in find were the be the more $X.X of with product the specific reflecting that if In our make in infrastructure, for is rate for about with Year-to-date decline to environment simply XXXX R&D was to total in and second at The spending Operating approximately the comments. exclude prescription range way experienced gross includes target the his forecast impossible produce QX commercialization points million of the parts two to we its important quarter goods their areas, engineering a business it were governance, payments million. this the program of that rest cost cost team. totaled of to program alternative address the to development PPV positioning are QX the highest promotion company and last the Gross future Diagnostic we Quell variable manage of normal into seen XX%. marketing growth. the to isn’t a to rate that PPV as line revenue down, well and than markups corporate address indications. $X Quell consulting was erosion the our Advanced with a to development in of both a designed indications. user in talent. this we X.X% quarter, year. personnel reflects as what, at disease transition the second to initiatives. We basis prescription with portfolio the and strategically DPNCheck The cash increased the a product Medicare margin commitment reflecting essential quarter, $X.X any, will

Year-to-date million and program Net was share. that costs. half a We’re spending in loss of second be will expect $X.XX $X.X stages of net share. the quarter one-time was or approximately million or $X.X in program the a the loss the early $X.XX

period quarter a with cash was in a $X.X about continue balance the net We debt-free we common with million. ended cash of in our and shares capital $XXX,XXX cash flow $XX approximately the was and X.X equivalents consumption outstanding. And million to total securities. simple sheet, year-to-date maintain structure and million Regarding cash,

support comments. Dr. to hand adequate our capitalized adequately growth this And for and beyond. We’re and is initiatives Gozani’s on year our now funding

Shai Gozani

Thank you, Tom.

multiyear line. core three to financial transitioning top-line on elements the with effort a to stabilize a our on health are a the attention strategy. growth There growth company’s balanced focus We from are towards bottom

growth The fibromyalgia first the I’ll Quell the and Quell is And on indication to of in advance these is is Neurotherapeutics second third program. business, each DPNCheck our comment our Advantage Medicare to launch organic initiatives. the

now of First, biosensors on XX%. care with DPNCheck Medicare was reflected under commercial Medicare Advantage. growth a the are and sales Advantage a respect increased commercial of existing covered encouraging DPNCheck XXXX. Medicare to health growth medical is The utilization the team customers. market. year-over-year patients impact in includes cycle that revenue starting an groups, primarily value-based adoption increasing companies, the DPNCheck. be This Advantage of business large DPNCheck portion therefore, systems in where will We this felt and from The market focuses new team in health bulk have in the the by the assessment substantial This long,

A have sales confidence end X.X. supply There However, before pilot devices chain. are hope full quality deployed have of the DPNCheck called in meet market. are will in Medicare number once We to pleased with and and the inventory built trials a the our being we the launch support We are large market follow customers. device, activities initial we in continued year. potential activities of with this the that growth developing our the will position strategically launched up and The goal pipeline. R&D depth second-generation of the recently Advantage

end health to is XXXX, Another through of quarter and the about we address fruition by DPNCheck expect R&D have We platform DPNCheck in a early that the and which analytics allows to we which cloud, the implementation of impact a will to launching And monitor in talk cloud come questions of program optimize development population key that it positively utilization will our DPNCheck is XXXX. efforts data over of balance should the customers dashboards. family biosensor the web-based R&D additional that year. third and start anticipate

Moving starting a to have with chronic transitioning of years, couple are fibromyalgia we a to indication, the our non-specific treatment symptoms extremity Quell we from of pain past treatment fibromyalgia. focused over over-the-counter prescription lower the Quell of for neurotherapeutic platform, discussed the as

as treatments As FDA-approved a for U.S. year milnacipran, – people side The designation this in pregabalin, May and substantial July de duloxetine the only authorization breakthrough non-pharmacologic FDA with this FDA a indication XXXX received chronic of many that May. XX of fibromyalgia in drugs authorization is Quell and individuals treatment have in pain affects fibromyalgia. effects. We syndrome three novo only first often novo as in and are which de for reminder, million complex the is

neuropathy, to An to severe as Quell refine and de past results will out who program be to the in continue events file is in of receive and the CIPN, time, come of confirm And collect initial of positive, year initial of reminder, year National before is and to develop We quarter but the the If study marketing full proceed the peripheral as next NIH could key years in and request as fibromyalgia chronic Cancer received has launch XXXX. effect Quell effectiveness these the multicenter, planned FDA strategy randomized, CPN our messaging a or occur this first January the XXXX. affects can expansion. expect breakthrough we The platform, enrolled. planning now growth for will is of fourth us indicators commercial some element limited treatment. a growth of resume which to to of preliminary findings the XX% the fully pipeline debilitating plan And are double-blinded, in FDA a that The neurotherapeutics management overall year. to launch people many we moving along to sham-controlled and allow the to couple prescription our If solution as take then third for cancer are novo Quell chemotherapy-induced expect neurotherapeutics underway side year. designation treating now the performance to in the been beyond chemotherapy. trial moderate indication. a will and of purpose end for revenue XXXX. half of that’s results Disclosure It of we of the the Institute-funded in or a to launch furthest is to the this further

occur beneficial that chronic long population. health overlapping We ongoing a individuals we have and conditions. pain and to central state We that is pain, amplifies that process in starting often migraine, is or and pathological other other experience pain hypothesized irritable therefore, take this COPC common and joint Many COPC, Quell chronic the signals. that a same point. conditions COVID we and the called happy at fibromyalgia that common to this bowel syndrome. will with decreases and back temporomandibular prepared called or set soon comments, patient disorder symptoms sensory Quell hypothesized beneficial may COVID syndrome. a therefore, what is of These pilot in similar long be will be which conditions share low brain which this is together our fibromyalgia, sensitization overall are with to And thought the central sensitization, concludes be in over in studies includes questions

Shai Gozani

Thank the us of balance to we today forward the you you look and for keeping year. joining updated over

Operator

This concludes program. the

now You day. have great disconnect. may Everyone, a

NeuroMetrix (NURO) 21 Jul 222022 Q2 Earnings call transcript