NeurAxis, Inc. ((NRXS)) has held its Q4 earnings call. Read on for the main highlights of the call.
NeurAxis, Inc. recently held its fourth quarter 2024 earnings call, revealing a mixed sentiment. The company showcased impressive growth in revenue and insurance coverage, alongside significant achievements such as the awarding of a Category 1 CPT code and successful FDA clearances. However, these positive developments were tempered by ongoing financial losses and challenges related to insurance coverage and expenses.
Significant Revenue Growth
NeurAxis reported a remarkable 43% increase in revenue for Q4 2024 compared to the same period in 2023, reaching $761,000. This growth was accompanied by a 45% rise in unit sales, underscoring the company’s expanding market presence.
Expansion of Covered Lives
The company achieved a substantial increase in insurance coverage, with covered lives rising from 4 million to approximately 51 million. This expansion marks a significant milestone in NeurAxis’ efforts to broaden its reach and enhance accessibility to its products.
Category 1 CPT Code Awarded
In a notable development, the American Medical Association awarded NeurAxis a Category 1 CPT code, effective January 1, 2026. This is expected to streamline billing and reimbursement processes, potentially boosting the company’s financial performance.
FDA Clearance and Product Launch
NeurAxis received FDA clearance for its rectal expulsion device (RED) on December 6 and has commenced commercialization, with the first order booked in Q1 2025. This clearance is a critical step in enhancing the company’s product portfolio.
Gross Margins Maintained
Despite offering increased discounts, NeurAxis successfully maintained its gross margins at 86.4% in Q4 2024, consistent with the previous year. This stability reflects the company’s effective cost management strategies.
Successful Age Expansion for IB-Stim
The FDA expanded the age range for NeurAxis’ IB-Stim technology from 11-18 years to 8-21 years, significantly broadening the market opportunity and potential customer base for this product.
Financial Losses
NeurAxis reported a net loss of $1.5 million for Q4 2024, an improvement from the $5.3 million loss in Q4 2023. While still a concern, this reduction in losses indicates progress in the company’s financial management.
SG&A Expenses Increase
The company experienced a 2% increase in SG&A expenses in Q4 2024 compared to the previous year, driven by higher headcount and operational costs. This rise in expenses highlights the challenges NeurAxis faces as it scales its operations.
Insurance Coverage Delays
Despite significant progress, NeurAxis continues to face delays in securing national insurance policy coverage. These delays pose a challenge to potential revenue growth and underscore the complexities of navigating the insurance landscape.
Forward-Looking Guidance
Looking ahead, NeurAxis provided robust guidance, emphasizing a positive growth trajectory. The company anticipates further revenue acceleration with the effective date of the Category 1 CPT code in 2026 and the expanded age indication for IB-Stim. Additionally, FDA clearance for the RED device and strong gross margins position NeurAxis to achieve cash flow breakeven at an estimated revenue range of $10 million to $12 million.
In summary, NeurAxis’ earnings call painted a picture of a company on the rise, with significant achievements and growth prospects. While financial losses and insurance coverage challenges remain, the positive momentum in revenue growth, product expansion, and strategic developments provide a promising outlook for the future.