11.4 C
London
Thursday, September 29, 2022

Is this medical equipment maker ready to continue its rally?

Must read

Ian is expected to make landfall again as a hurricane, this time in South Carolina.

North Carolina and South Carolina were on alert Thursday as Ian headed for them after cutting a path of destruction through Florida and regaining...

Binance Founder Changpeng ‘CZ’ Zhao Shares His Vision of Web3 Capabilities at TC Sessions: Crypto • londonbusinessblog.com

When it comes to the decentralized world of crypto, there are few single entities that are bigger or hold more weight in the industry...

Limit reached – Join the EU Startups CLUB

€147/quarter This option is ideal for companies and investors who want to keep up to date with Europe's most promising startups, have full access...

Autodesk and Epic Games Bring Architecture Tools Immersion

While Autodesk architecture software like Revit is capable of creating 3D design plans, the collaboration introduces easy-to-use tools for designers, with features typically more...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

We all know those commercials where someone often has to get up at night to pee; Axonics (NASDAQ: AXNX) is a company whose products address that problem.


MarketBeat.com – MarketBeat

The stock rose to a high on Monday and then retreated along with the broader market.

The Irvine, California company specializes in sacral neuromodulation (SNM) systems. These are used to treat people with an overactive bladder. Symptoms include urinary incontinence and the urge to urinate frequently. The company’s products treat other related conditions, such as bowel control problems.

So what exactly are SNM systems? Axonics is not a pharmaceutical company; instead, it is a medical device manufacturer. The company’s implantable Axonics R15 and F15 provide neurostimulation to help patients regain bowel and bladder control.

Medtronic (NYSE:MDT) is a rival in this area, with its InterStim therapy for bladder control.

The two companies were previously embroiled in a patent dispute over SNM devices.

One of Axonics’ selling points is that in many cases the systems are compatible with full-body MRIs. That means magnets won’t interfere with the MRI scan, a major convenience factor for patients wearing internal devices.

The company also offers an externally worn test device so patients can understand how the equipment works.

Another product is Bulkamid, an injectable treatment for stress urinary incontinence, a condition in which urine leaks out during moments of physical activity that increase abdominal pressure, such as coughing, sneezing or exercising. Axonics acquired Bulkamid in 2021.

Young company in rapid growth mode

The company had its IPO in 2018, meaning it’s still well within the time frame when a stock is likely to make big price gains. Indeed, it has, as the stock is up 6.77% in the past month, 55.18% in the past three months and 38% year-to-date.

Last week, Axonics said the University of Alberta in Canada had implanted four patients with the company’s F15 system. It was the company’s first step into the Canadian market.

Following that announcement, the stock climbed 5.02% in trading volume 87% higher than normal. Sales were also heavy as the stock advanced in the next session and recovered to a new high on Monday.

Axonics reported its second quarter on August 1. The company is not yet profitable, which is not unusual for medical technology companies in their early growth years.

However, sales have increased by double or triple digits for the past eight quarters. Year-over-year sales rose, even during the pandemic, when many medical procedures were postponed. The three-year revenue growth rate is a whopping 283%.

There was some good news in the report: the second quarter loss was smaller than analysts’ expectations and sales exceeded expectations, according to data collected by MarketBeat.

Analysts raise price targets

Change into MarketBeat price target dataanalysts have a “buy” recommendation for the stock, with a consensus target of $77.86, just $0.92 from where it currently trades.

Since the earnings report, five analysts have raised their price target for the stock.

Publishing the results, CEO Raymond Cohen said: “Sacral neuromodulation revenue grew 39% year over year, thanks to the broad commercial launch of the Axonics F15, our newly developed, long-lived, charge-free sacral neuromodulation system. Bulkamid generated another quarter of record sales and we now expect approximately 50,000 women to have their symptoms of stress urinary incontinence treated with Bulkamid by 2022.”

Cohen praised a TV campaign, which began in April, for raising awareness of the company’s therapies.

The company raised its expectations for fiscal year 2022. It now expects:

  • Total operating revenue of $253 million, up 40% from fiscal year 2021, compared to previous revenue estimates of $238 million.
  • Sacral neuromodulation revenue of $205 million, up 30% from fiscal 2021.
  • Bulkamid sales of $48 million, up 111% from fiscal 2021.

There is a lot of good news here, but always be careful when investing in a stock that is not yet profitable. On the other hand, many medical startups are setting themselves up as acquisition targets. A company like Axionics with rapidly growing revenues could be a good candidate for an acquisition in the future.
Is this medical equipment maker ready to continue its rally?

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Ian is expected to make landfall again as a hurricane, this time in South Carolina.

North Carolina and South Carolina were on alert Thursday as Ian headed for them after cutting a path of destruction through Florida and regaining...

Binance Founder Changpeng ‘CZ’ Zhao Shares His Vision of Web3 Capabilities at TC Sessions: Crypto • londonbusinessblog.com

When it comes to the decentralized world of crypto, there are few single entities that are bigger or hold more weight in the industry...

Limit reached – Join the EU Startups CLUB

€147/quarter This option is ideal for companies and investors who want to keep up to date with Europe's most promising startups, have full access...

Autodesk and Epic Games Bring Architecture Tools Immersion

While Autodesk architecture software like Revit is capable of creating 3D design plans, the collaboration introduces easy-to-use tools for designers, with features typically more...

What Bruce Lee can teach us about the benefits of conflict

Opinions expressed by londonbusinessblog.com contributors are their own. Can business leaders argue that employees are their greatest asset without providing ongoing forums for open exchange...