Myomo Reports Preliminary Fourth Quarter Revenue and Backlog
- Expected 14% to 19% increase in revenue compared to the same period a year ago
- Cash balance of approximately $8.7M as of December 31, 2023
- 40% increase in backlog, including Medicare Part B beneficiaries
- Anticipation of significant revenue growth in 2024, aiming for at least $100 million in annual revenues within the next five years
- None.
Insights
The preliminary revenue figures for Myomo, Inc. indicate a robust year-on-year growth of 14% to 19% for the fourth quarter of 2023. This performance is noteworthy in the context of the broader medical device sector, which typically sees a compound annual growth rate (CAGR) of around 5%. The revenue growth, coupled with the reported cash balance of approximately $8.7M, suggests a solid financial position for the company. Investors should consider the operational efficiency and cost management that have contributed to this financial outcome.
Furthermore, the classification of MyoPro as a brace by CMS could have a substantial impact on revenue streams. This change facilitates a lump sum reimbursement, potentially simplifying the revenue recognition process and improving cash flow. The backlog increase of approximately 40% is a positive indicator of future revenue, although the dependency on individual patient record reviews for Medicare Part B reimbursement could introduce delays in payment recognition. The company's goal to reach $100 million in annual revenues within five years sets an ambitious target, reflecting management's confidence but also posing a risk if growth expectations are not met.
The strategic focus on Medicare Part B patients by Myomo, Inc. is indicative of the company's alignment with demographic trends, such as an aging population likely to suffer from neurological disorders and upper-limb paralysis. The backlog growth, particularly with Medicare beneficiaries, is a critical metric, as it underscores the demand for MyoPro devices and the company's potential market penetration.
However, the reimbursement process through individual consideration may affect the speed at which Myomo can recognize revenue. It is essential to analyze industry benchmarks for reimbursement times and compare them with Myomo's processes. Investors should monitor how efficiently Myomo can navigate the regulatory environment and manage the anticipated increase in operational workload due to the expanded addressable market.
The formal classification of the MyoPro device as a brace by CMS is a significant regulatory milestone for Myomo. It not only opens up new opportunities for reimbursement but also potentially broadens the patient base. This policy change reflects an evolving healthcare landscape where technology and medical devices are increasingly integrated into standard care protocols.
However, the process of individual consideration for Medicare Part B patients underscores the complexity of healthcare reimbursement policies. It is important for stakeholders to understand the implications of this process on the company's cash flow and operational efficiency. Delays in reimbursement due to medical necessity reviews could affect the company's financial performance, despite the increased addressable market. Stakeholders should also keep abreast of any potential policy changes that could impact the reimbursement landscape for medical devices like MyoPro.
Revenue for the fourth quarter of 2023 is expected to be in the range of
As of January 1, 2024, the Centers for Medicare and Medicaid Services (“CMS”) has formally classified the MyoPro as a brace, which is reimbursed on a lump sum basis. During the fourth quarter, the Company accelerated its efforts to identify and evaluate qualified Medicare Part B patients. As a result, backlog as of December 31, 2023, including Medicare Part B beneficiaries, was approximately 230 patients, an increase of approximately
“We’ve begun deliveries of our MyoPro device to Medicare Part B beneficiaries, a patient population we expect to be a significant driver of revenue growth in 2024,” stated Paul R. Gudonis, Myomo’s Chairman and CEO. With this anticipated major increase in our addressable market, our aspiration is to achieve at least
MyoPro deliveries to Medicare Part B beneficiaries in the near term are being made under the process of individual consideration, whereby medical records for each patient are expected to be reviewed to determine medical necessity prior to reimbursement. As a result, near-term revenues for Medicare Part B beneficiaries are expected to be recognized upon receipt of payment.
The Company plans to report financial results for the fourth quarter and year ended December 31, 2023 before March 15, 2024.
About Myomo
Myomo, Inc. is a wearable medical robotics company that offers improved arm and hand function for those suffering from neurological disorders and upper-limb paralysis. Myomo develops and markets the MyoPro product line. MyoPro is a powered upper-limb orthosis designed to support the arm and restore function to the weakened or paralyzed arms of certain patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury, ALS or other neuromuscular disease or injury. It is currently the only marketed device that, sensing a patient’s own EMG signals through non-invasive sensors on the arm, can restore an individual’s ability to perform activities of daily living, including feeding themselves, carrying objects and doing household tasks. Many are able to return to work, live independently and reduce their cost of care. Myomo is headquartered in
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future business expectations, including expectations for revenue for the fourth quarter of 2023 and within the next five years, and its cash balance and backlog as of December 31, 2023, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors.
These factors include, among other things:
• We have a history of operating losses and our financial statements for the period ended September 30, 2023 include disclosures regarding there being substantial doubt about our ability to continue as a going concern;
• our ability to obtain sufficient reimbursement from third-party payers for our products, including CMS for Medicare Part B patients;
• our revenue concentration with a particular insurance payer as a result of focusing our efforts on patients with insurers who have previously reimbursed for the MyoPro;
• our ability to continue normal operations and patient interactions without supply chain disruption in order to deliver and fit our custom-fabricated device;
• our marketing and commercialization efforts;
• our dependence upon external sources for the financing of our operations, to the extent that we do not achieve or maintain cash flow breakeven;
• our ability to effectively execute our business plan and scale up our operations;
• our expectations as to our product development programs, and;
• general market, economic, environmental and social factors that may affect the evaluation, fitting, delivery and sale of our products to patients.
More information about these and other factors that potentially could affect our financial results is included in Myomo’s filings with the Securities and Exchange Commission, including those contained in the risk factors section of the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and other filings with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Although the forward-looking statements in this release of financial information are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material or adverse. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
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For Myomo:
ir@myomo.com
Investor Relations:
Kim Sutton Golodetz
LHA Investor Relations
kgolodetz@lhai.com
212-838-3777
Source: Myomo, Inc.
FAQ
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