We’ve all seen these commercials the place somebody has to rise up often in the course of the evening to urinate; Axonics (NASDAQ: AXNX) is an organization whose merchandise tackle that drawback.
The inventory rallied to a excessive on Monday then pulled again together with the broader market.
The Irvine, California firm makes a speciality of sacral neuromodulation (SNM) techniques. These are used to deal with folks with overactive bladders. Signs embrace urinary urge incontinence and the urge to urinate often. The corporate’s merchandise deal with different associated situations, reminiscent of bowel management points.
So what precisely are SNM techniques? Axonics just isn’t a pharmaceutical firm; as a substitute, it’s a medical gear maker. The corporate’s implantable Axonics R15 and F15 create neurostimulation to assist sufferers regain bowel and bladder management.
Medtronic (NYSE: MDT) is a rival on this area, with its InterStim bladder management remedy.
The 2 firms had beforehand been engaged in a patent dispute over SNM gadgets.
Considered one of Axonics’ promoting factors is that its techniques are appropriate with full-body MRIs in lots of instances. Meaning magnets received’t intervene with the MRI scan, an enormous comfort issue for sufferers sporting inside gadgets.
The corporate additionally affords an externally-worn trial gadget, so sufferers can get an understanding of how the gear features.
One other product is Bulkamid, an injectable therapy for stress urinary incontinence, a situation when urine leaks out throughout moments of bodily exercise that will increase belly stress, reminiscent of coughing, sneezing or train. Axonics acquired Bulkamid in 2021.
Younger Firm In Quick Development Mode
The corporate had its IPO in 2018, which means it is nonetheless properly inside the time frame when a inventory is prone to notch huge value positive aspects. That’s certainly been the case, because the inventory superior 6.77% prior to now month, 55.18% prior to now three months and 38% year-to-date.
Final week, Axonics stated the College of Alberta in Canada had implanted 4 sufferers with the corporate’s F15 system. It marked the corporate’s first foray into the Canadian market.
After that announcement, the inventory vaulted 5.02% in buying and selling quantity 87% larger than regular. Turnover was additionally heavy because the inventory superior within the following session, then rallied to a brand new excessive on Monday.
Axonics reported its second quarter on August 1. The corporate just isn’t but worthwhile, which isn’t uncommon for medical expertise firms of their early development years.
Nevertheless, income has elevated at double- or triple-digit charges in every of the previous eight quarters. Yr-over-year gross sales had been rising even in the course of the pandemic, when many medical procedures had been postponed. Its three-year income development charge is a stellar 283%.
There was excellent news within the report: The second-quarter loss was narrower than analysts anticipated and income beat views, in keeping with knowledge compiled by MarketBeat.
Analysts Boosting Value Targets
Turning to MarketBeat value goal knowledge, analysts have a “purchase” score on the inventory, with a consensus goal of $77.86, simply $0.92 from the place it’s at present buying and selling.
Because the earnings report, 5 analysts boosted their value goal on the inventory.
Within the earnings launch, CEO Raymond Cohen stated, “Sacral neuromodulation income grew 39% yr over yr, benefiting from the broad business launch of the Axonics F15, our newly developed, long-lived, recharge-free sacral neuromodulation system. Bulkamid generated one other quarter of file income and we now count on roughly 50,000 ladies may have their stress urinary incontinence signs handled with Bulkamid in 2022.”
Cohen credited a TV marketing campaign, which started in April, for lifting consciousness of the corporate’s therapies.
The corporate elevated its steerage for fiscal yr 2022. It now expects:
- Complete firm income of $253 million, a rise of 40% in comparison with fiscal yr 2021. This compares to prior income steerage of $238 million.
- Sacral neuromodulation income of $205 million, a rise of 30% in comparison with fiscal yr 2021.
- Bulkamid income of $48 million, a rise of 111% in comparison with fiscal yr 2021.
There’s loads of excellent news right here, however at all times use warning when investing in a inventory that’s not but worthwhile. However, many medical startups set themselves up as acquisition targets. An organization like Axionics that’s quickly rising income could possibly be an excellent candidate for an acquisition down the highway.