ECOR: Adding Reliefband to the Portfolio
NASDAQ:ECOR
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Since the first quarter update in early May, electroCore Inc. (NASDAQ:ECOR) has continued to expand its presence in new research efforts and build its stable of partners with a new distribution agreement. The company also announced better than expected revenues in the second quarter driven by its new initiatives in Truvaga and Tac-Stim. Other news was also promulgated including attendance at multiple conferences and the departure of founder and former CEO of electroCore, JP Errico, from the Board of Directors.
Updated 2Q:23 Revenue Guidance
Our estimates called for $3.22 million of revenues in the second quarter of 2023 while electroCore’s updated guidance provided in a July 11th press release anticipates $3.55 million, which is a 65% increase over prior year levels and a sequential 16% increase. The Department of Veterans Affairs (VA) and Department of Defense (DoD) is guided to contribute $2.1 million in revenues on the addition of new treatment facilities and longer treatment duration generating a 75% increase in the company’s most important segment.
By segment, cash pay revenues through gC Direct and gConcierge have increased to $430 on a greater number of prescribers producing a 32% year over year increase. Recently launched Truvaga also had an impressive growth trend, almost doubling to $291,000 sequentially. Tac-Stim, which was also recently launched, is expected to generate over $300,000 in the quarter. Ex-US sales took a breather, expected to rise a meager 2% on a year over year basis. Cash burn is forecasted at $3.5 million for the three-month period. electroCore has continued its strong trajectory and benefitted from new initiatives in the most recent quarter. Despite the stronger than expected 2Q:23 revenue numbers, electroCore conservatively maintained its full year guidance of $14 - $15 million for 2023.
Reliefband Technologies
electroCore announced a distribution and billing agreement with Reliefband Technologies to provide their prescription Reletex product to the DoD and other Federal Supply Schedule entities. The product is an FDA cleared non-invasive neuromodulation device for nausea and vomiting. The product has a number of applications including seasickness, morning sickness, chemotherapy related nausea, anxiety, migraines and other. While the future impact on the bottom line has not been quantified, it does provide a new product for electroCore to offer and potentially expands call points for the gammaCore product.
National Football League and National Football League Players Association Study
The National Football League (NFL) and the National Football League Players Association (NFLPL) awarded a grant to independent medical researchers to examine the benefit of non-invasive vagus nerve stimulation (nVNS) and cannabidiol (CBD) on headache. The award will fund investigations into new alternative pain treatments that could benefit NFL players and a broader audience. The primary indication is Post-Traumatic Headache which will be evaluated using gammaCore and CBD in a pilot study “Assessing Non-Invasive Treatment of Refractory Post-Concussion Headache Pain.” Dr. Erika Petersen, researchers at the American Society of Pain and Neuroscience (ASPN), and Emory University have been awarded the grant.
New Tac-Stim Study in Cognitive Performance
The Air Force Research Laboratories has selected the Tac-Stim device to evaluate in context of assessing and augmenting cognitive performance in extreme environments. The five-year project will be led by the Florida Institute for Human and Machine Cognition (IHMC). The goal of the program awarding the grant is to build a wearable system to sense, assess and augment cognitive performance in operational environments. Electrophysiological and biomarker sensors will assess stress and fatigue in extreme environments for servicemembers. The goal of the program is to identify devices that can improve performance in multi-day transoceanic operational and logistic flights as well as long duration remotely piloted aircraft missions. A further goal is to improve the long term-health of individuals in these environments. According to a representative from the Air Force, Tac-Stim was selected for this project based on its demonstrated ability to mitigate fatigue and improve performance in several relevant environments.
Other Highlights
electroCore participated in several scientific and investor conferences over the last few months. This included the 13th Annual LD Micro Invitational on June 6 held in Los Angeles, the Maxim Group Virtual Healthcare Conference on June 21 and the American Headache Society’s (AHS) 65th Annual Scientific Meeting on June 17 in Austin, Texas. The title of the scientific poster was “SUNCT/SUNA with neurovascular conflict: consider nVNS” which observed efficacy of nVNS in three patients with rare headache diseases, SUNCT/SUNA, in the class of headache disorders known as Trigeminal Autonomic Cephalalgias (TACs). The retrospective study suggests that nVNS, as a treatment for TACs in general, and specifically for refractory SUNCT/ SUNA, should be considered before microvascular neurosurgery, particularly given the well-recognized risks and costs of such surgical procedures.
Board Member Departure
JP Errico, the founder and former CEO of electroCore announced his resignation from the Board of Directors of the company in late May. He will continue to serve as a strategic advisor focused on supporting the growth and direction of electroCore’s new initiatives.
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1. Source: electroCore Corporate Presentation July 2023
2. Source: electroCore Corporate Presentation July 2023
3. Source: electroCore Corporate Presentation April 2023
