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electroCore Extends VA Contract for Five Years

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electroCore (ECOR) has secured a new five-year Federal Supply Schedule (FSS) contract with the Veterans Affairs (VA), effective from June 15, 2025, through June 14, 2030. The renewal comes after the VA's termination of 585 non-mission critical contracts, highlighting gammaCore's strategic importance.

The company reported accelerated revenue from VA hospitals in February and March 2025, following a slight slowdown in January, indicating sustained demand for their drug-free migraine treatment solution. The new contract includes provisions for prompt pay discounts and volume rebates for revenues exceeding $10 million per calendar year.

electroCore (ECOR) ha ottenuto un nuovo contratto quinquennale con il Federal Supply Schedule (FSS) per le Veterans Affairs (VA), valido dal 15 giugno 2025 al 14 giugno 2030. Il rinnovo arriva dopo la cessazione da parte delle VA di 585 contratti non critici per la missione, evidenziando l'importanza strategica di gammaCore.

L'azienda ha riportato un'accelerazione dei ricavi dagli ospedali VA a febbraio e marzo 2025, dopo un leggero rallentamento a gennaio, indicando una domanda sostenuta per la loro soluzione di trattamento per l'emicrania senza farmaci. Il nuovo contratto include disposizioni per sconti sui pagamenti tempestivi e rimborsi per volumi di ricavi superiori a 10 milioni di dollari all'anno.

electroCore (ECOR) ha asegurado un nuevo contrato de cinco años con el Federal Supply Schedule (FSS) para las Veterans Affairs (VA), vigente desde el 15 de junio de 2025 hasta el 14 de junio de 2030. La renovación se produce tras la terminación por parte de la VA de 585 contratos no críticos para la misión, lo que resalta la importancia estratégica de gammaCore.

La empresa reportó un aumento acelerado de ingresos de los hospitales de la VA en febrero y marzo de 2025, tras una ligera desaceleración en enero, lo que indica una demanda sostenida de su solución para el tratamiento de migrañas sin medicamentos. El nuevo contrato incluye disposiciones para descuentos por pago puntual y reembolsos por volúmenes de ingresos que superen los 10 millones de dólares por año calendario.

electroCore (ECOR)는 2025년 6월 15일부터 2030년 6월 14일까지 유효한 퇴역군인부(VA)와의 새로운 5년 연방 조달 일정(FSS) 계약을 체결했습니다. 이 갱신은 VA가 585개의 비임무 중요 계약을 종료한 후 이루어졌으며, gammaCore의 전략적 중요성을 강조합니다.

회사는 2025년 2월과 3월에 VA 병원으로부터 수익이 가속화되었다고 보고했으며, 이는 1월의 약간의 둔화 이후 지속적인 수요를 나타냅니다. 새로운 계약에는 연간 1천만 달러를 초과하는 수익에 대한 신속 지급 할인 및 볼륨 리베이트 조항이 포함되어 있습니다.

electroCore (ECOR) a obtenu un nouveau contrat de cinq ans avec le Federal Supply Schedule (FSS) pour les Veterans Affairs (VA), valable du 15 juin 2025 au 14 juin 2030. Le renouvellement intervient après la résiliation par les VA de 585 contrats non critiques pour la mission, soulignant l'importance stratégique de gammaCore.

L'entreprise a signalé une augmentation accélérée des revenus provenant des hôpitaux VA en février et mars 2025, après un léger ralentissement en janvier, ce qui indique une demande soutenue pour leur solution de traitement des migraines sans médicaments. Le nouveau contrat comprend des dispositions pour des remises de paiement rapide et des remises sur volume pour des revenus dépassant 10 millions de dollars par an.

electroCore (ECOR) hat einen neuen fünfjährigen Vertrag mit dem Federal Supply Schedule (FSS) für die Veterans Affairs (VA) gesichert, der vom 15. Juni 2025 bis zum 14. Juni 2030 gültig ist. Die Verlängerung erfolgt nach der Kündigung von 585 nicht mission-kritischen Verträgen durch die VA, was die strategische Bedeutung von gammaCore unterstreicht.

Das Unternehmen berichtete von einem beschleunigten Umsatz aus VA-Krankenhäusern im Februar und März 2025, nach einem leichten Rückgang im Januar, was auf eine anhaltende Nachfrage nach ihrer medikamentenfreien Migränebehandlungslösung hinweist. Der neue Vertrag umfasst Bestimmungen für sofortige Zahlungsrabatte und Mengenrabatte für Umsätze, die 10 Millionen Dollar pro Kalenderjahr übersteigen.

Positive
  • Secured new 5-year VA contract extension through 2030
  • Contract renewal achieved despite VA's termination of 585 other contracts
  • VA hospital revenue showed acceleration in Feb-Mar 2025
  • New contract includes volume rebates for revenues over $10M annually
Negative
  • Experienced revenue slowdown in January 2025

ROCKAWAY, N.J., March 31, 2025 (GLOBE NEWSWIRE) -- electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine and wellness company, announced today that electroCore has received a new Federal Supply Schedule (FSS) contract, with an effective date of June 15, 2025 and running through June 14, 2030.

“Obtaining a follow-on contract in this macro environment is a tremendous vote of confidence by the Veterans Affairs (VA) FSS Service, demonstrating that gammaCore continues to be a cost effective therapeutic benefiting our veterans,” commented Dan Goldberger, Chief Executive Officer of electroCore. “VA Hospital revenue accelerated in February and March, after modest slowing in January 2025, reflecting continued demand for this drug-free method for addressing migraine headaches.”

Mr. Goldberger continued, “On March 3, 2025, the VA terminated 585 non-mission critical or duplicative contracts following review by the new administration. This award of a new, five-year contract following such an audit further validates the value we provide the VA system and our veterans. We are greatly appreciative of the support we received during this two-year process from our FSS contract officer in ensuring our veterans have access to our non-opioid pain solution.” For more information regarding review and termination of VA contracts by the new administration, visit VA Press Release.

The new contract has a five-year term and contains customary revisions, including prompt pay discounts and volume rebates on revenues greater than $10 million in a calendar year. We will continue to operate under the current contract until June 15, 2025, at which time the new 5 year contract will become effective.

About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine and wellness company dedicated to improving health and promoting general wellness through its non-invasive vagus nerve stimulation (“nVNS”) technology platform. The Company is focused on commercializing medical devices for managing and treating certain medical conditions and consumer product offerings utilizing nVNS to promote general wellbeing and human performance in the United States and select overseas markets.

For more information, visit www.electrocore.com.

Forward-Looking Statements
This press release and other written and oral statements made by representatives of electroCore may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about electroCore's business prospects and clinical and product development plans; its pipeline or potential markets for its technologies; the timing, outcome and impact of regulatory, clinical and commercial developments; the Company’s business prospects through the new FSS contract and availability to FSS eligible entities or other new markets or other distribution agreements and other statements that are not historical in nature, particularly those that utilize terminology such as "anticipates," "will," "expects," "believes," "intends," other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore™, competition in the industry in which electroCore operates and overall market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents electroCore files with the SEC available at www.sec.gov.

Contact:
ECOR Investor Relations
(973) 302-9253
investors@electrocore.com


FAQ

When does electroCore's (ECOR) new VA contract begin and end?

The new contract begins June 15, 2025, and runs through June 14, 2030.

What financial incentives are included in ECOR's new VA contract?

The contract includes prompt pay discounts and volume rebates for revenues exceeding $10 million in a calendar year.

How did ECOR's VA hospital revenue perform in early 2025?

Revenue showed acceleration in February and March 2025, following a modest slowdown in January.

How many VA contracts were terminated before ECOR's renewal?

The VA terminated 585 non-mission critical or duplicative contracts before renewing ECOR's contract.
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