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WALTHAM, Mass., April 25, 2019 (GLOBE NEWSWIRE) -- NeuroMetrix, Inc. (Nasdaq: NURO), today reported financial and business highlights for the quarter ended March 31, 2019.
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 managing chronic pain. DPNCheck® is a point-of-care test that provides accurate and cost-effective screening, diagnosis and monitoring of diabetic peripheral neuropathy (DPN).
"The in-depth review of our Quell strategy that last quarter we advised would be conducted is now in its last stages,” said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. “We believe that this work is providing important insights on our target markets, points of differentiation in customer messaging, and possible changes in product pricing and positioning. We plan to complete this review by the end of the second quarter and implement changes to our level of investment in Quell as appropriate based on those results.”
In Q1 2019 total revenues were $3.1 million versus $4.9 million in the prior year period, a decrease of 37%. Gross margin was 25.6% of total revenues versus 40.2% in Q1 2018. Gross margin was reduced by a charge in Q1 2019 of $0.7 million for excess inventory related to earlier Quell products. Excluding the charge, gross margin was 48.0%, a gain of 7.8 percentage points compared to Q1 2018. Operating expenses were $4.5 million compared to $5.6 million in Q1 2018. The $1.1 million reduction included co-funding of certain Quell R&D costs by GlaxoSmithKline (GSK) plus reduced advertising spending. Collaboration income from GSK totaled $5.7 million, an increase of $1.0 million or 21% over Q1 2018. Net income was $2.1 million compared to $1.2 million in Q1 2018. Net cash usage in operations was $3.5 million versus $2.7 million in Q1 2018. The Company ended the quarter with cash of $7.2 million.
Company to Host Live Conference Call and Webcast
NeuroMetrix will host a conference call at 8:00am Eastern today, April 25, 2019. The call may be accessed in the United States at 844-787-0799, international at 661-378-9630 using confirmation code 3589503. A replay will be available starting two hours after the call at 855-859-2056 United States and 404-537-3406 international using confirmation code 3589503. It will remain available for one week. The call will also be webcast and accessible at http://www.NeuroMetrix.com under "Investor Relations".
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, the ability to successfully develop, receive regulatory clearance, commercialize and achieve market acceptance for any products, and the final outcome of the ongoing Federal Trade Commission civil investigative demand enforcement action involving Quell. 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 Securities and Exchange Commission or otherwise made public. The company is providing the information in this press release only as of the date hereof, and expressly disclaims any intent or obligation to update the information included in this press release or revise any forward-looking statements.
Source: NeuroMetrix, Inc.
Thomas T. Higgins
SVP and Chief Financial Officer
Statements of Operations
|Cost of revenues||2,324,231||2,955,260|
|Research and development||855,081||1,279,564|
|Sales and marketing||2,025,288||2,504,741|
|General and administrative||1,619,490||1,804,143|
|Total operating expenses||4,499,859||5,588,448|
|Loss from operations||(3,701,155||)||(3,600,718||)|
Condensed Balance Sheets
|Cash and cash equivalents||$||7,200,795||$||6,780,429|
|Other current assets||4,429,347||4,805,736|
|Lease Obligation, net of current portion||1,211,480||1,301,172|
|Total liabilities and stockholders’ equity||$||13,906,763||$||13,991,880|