electroCore: Could Patent Result in Commercial Success?

electroCore (ECOR) is a commercial-stage bioelectronic medical device company, with a proprietary non-invasive vagus nerve stimulation, or nVNS, therapy. nVNS is a “bioelectronic medical therapy that modulates neurotransmitters and immune Read More... The post electroCore: Could Patent Result in Commercial Success? appeared first on TipRanks Financial Blog.

electroCore: Could Patent Result in Commercial Success?

electroCore (ECOR) is a commercial-stage bioelectronic medical device company, with a proprietary non-invasive vagus nerve stimulation, or nVNS, therapy.

nVNS is a “bioelectronic medical therapy that modulates neurotransmitters and immune function through its effects on both the peripheral and central nervous systems.”

I remain neutral about everCore. (See electroCore stock charts on TipRanks)

The company’s gammaCore therapy is its first U.S. Food and Drug Administration (FDA) approved, non-invasive, hand-held medical therapy applied at the neck to treat migraines and cluster headaches.

everCore generates revenues through its gammaCore Sapphire flagship model; a portable, rechargeable, reusable, and reloadable option that can be self-administered by patients. This is a prescription-only model.

Last week, the company announced that the U.S. Patent and Trademark Office had issued a patent to the company “relating to devices, systems and methods integrated with, or coupled to, smartphones that allow patients to self-treat medical conditions, such as migraine headache, by electrical non-invasive stimulation of nerves.”

The company is looking at building an intellectual property (IP) portfolio centered around smartphone-connected and smartphone-integrated non-invasive therapy.

ECOR expects that this IP could be the foundation for combining the company’s nVNS therapy with application-based digital health platforms.

When it comes to the second quarter, the company earned revenues of $1.3 million, a jump of 69% year-over-year. ECOR’s adjusted EBITDA net loss narrowed to $4.1 million in Q2, versus a loss of $4.3 million in the same period of last year.

The company has focused on its sales efforts through two channels: the U.S. Department of Veterans Affairs and the U.S. Department of Defense, and the United Kingdom.

Dan Goldberger, CEO of electroCore, stated, “We saw continued progress in operating metrics across all our revenue channels. Our cash balance of $23.7 million at June 30, 2021, together with the approximately $18.8 million raised in our subsequent public offering and lower operating burn, puts the company in an excellent position to execute on its plan through 2022.”

When it comes to its Q3, ECOR has projected net revenues of $1.5 million and the usage of cash, net of financing activities, to be around $4.5 million.

Following the Q2 results, JMP Securities analyst David Turkaly reiterated a Hold rating on the stock.

According to Turkaly, the company’s Q2 results represented “modest incremental progress in its commercial and clinical efforts, including sequential growth within its VA/DoD [U.S. Department of Veterans Affairs and U.S. Department of Defense] channel (+15% over 1Q21), and a multitude of new investigator-initiated studies featuring its gammaCore technology.”

However, Turkaly is of the view that while ECOR’s proprietary gammaCore therapy has numerous advantages, “the company has yet to establish a secular growth profile and the physician adoption that is paramount to building a sustainable business.”

This could change with the patent obtained by everCore last week, as the company stated that the possibility of Remote Patient Monitoring or Remote Therapeutic Monitoring with the patent could “enable future business models and revenue streams for the company’s products.”

Turning to the rest of the Street, Wall Street analysts are bullish about electroCore, with a Strong Buy consensus rating, based on three Buys and one Hold.

The average electroCore price target of $3 implies 185.7% upside potential from current levels.

Disclosure: At the time of publication, Shrilekha Pethe did not have a position in any of the securities mentioned in this article​.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

The post electroCore: Could Patent Result in Commercial Success? appeared first on TipRanks Financial Blog.

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Activision Blizzard Stock Crumbles amid Workplace Practice Investigation

Activision Blizzard (ATVI) is a video game developer that's been in the headlines for all the wrong reasons. The company's workplace complaints have spiraled out of control. Now, the SEC Read More... The post Activision Blizzard Stock Crumbles amid Workplace Practice Investigation appeared first on TipRanks Financial Blog.

Activision Blizzard Stock Crumbles amid Workplace Practice Investigation

Activision Blizzard (ATVI) is a video game developer that's been in the headlines for all the wrong reasons.

The company's workplace complaints have spiraled out of control. Now, the SEC is investigating the company, and its CEO, Bobby Kotick, has been subpoenaed.

Its stock has fallen into a tailspin amid the September volatility, now off 28% from its all-time high. Things are pretty bad right now, but after such a massive drop in the stock already behind ATVI, I am neutral on the name.

Activision Blizzard Plunges Further

It's been quite the fall from grace for shares of Activision Blizzard. Its workplace practice issues could continue to act as a significant overhang on ATVI stock.

Undoubtedly, there's a push for change, with employees speaking out and some leaders and executive team members leaving the company. The real question on the minds of investors is whether the company can truly change for the better, and take the appropriate steps to repair its reputation.

In any case, further management turnover could continue amid the federal investigation that has investors hitting the Sell button. Recently, Chief Legal Officer Claire Hart left the company amid the recent rush for the exits.

It's really tough for investors to gauge how much worse things can get after such a drastic drop. We'll just have to wait and see, as Kotick is called to court.

Despite the profound pressure, ATVI stock has already been punished.

In addition, there are some big releases coming up, including Diablo 2 Resurrected and Call of Duty: Vanguard. Such releases are still likely to be overshadowed by the SEC investigation, however.

Wall Street's Take

According to TipRanks' analyst rating consensus, ATVI stock comes in as a Strong Buy. Out of 15 analyst ratings, there are 13 Buy recommendations, and two Hold recommendations.

The average ATVI price target is $113.14. Analyst price targets range from a low of $100 per share, to a high of $125 per share.

Activision Blizzard has already been hit with some price target downgrades amid the stock's latest tumble. Still, analysts don't appear ready to turn their backs on the name in a major way amid the latest negative headlines.

Could further management exits induce a relief rally in a name that's now in oversold territory? We'll have to wait and see.

Disclosure: Joey Frenette owned shares of Activision Blizzard at the time of publication.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

The post Activision Blizzard Stock Crumbles amid Workplace Practice Investigation appeared first on TipRanks Financial Blog.

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