NeuroPace Announces Refocusing of Product Portfolio
NeuroPace (NPCE) announced a strategic refocusing of its product portfolio, terminating its SEEG products distribution relationship with DIXI Medical in Q4 2025. The company will maintain its focus on its core RNS System product line.
The company reaffirmed its 2025 revenue guidance and long-range plan expectations, including:
- 20%+ revenue CAGR
- Cash flow breakeven target by end of 2027
- Gross margin improvement (RNS System >78% vs SEEG ~50%)
Key growth initiatives for 2026 include:
- Project CARE site of service expansion
- Indication expansion into drug-resistant idiopathic generalized epilepsy
- Expansion into pediatric focal epilepsy
- Launch of AI-enabled software products
NeuroPace (NPCE) ha annunciato un riorientamento strategico del proprio portafoglio prodotti, terminando la relazione di distribuzione dei prodotti SEEG con DIXI Medical nel quarto trimestre del 2025. L'azienda manterrà il suo focus sulla linea di prodotti RNS System.
L'azienda ha confermato le sue previsioni di fatturato per il 2025 e le aspettative del piano a lungo termine, includendo:
- CAGR del fatturato superiore al 20%
- Obiettivo di pareggio di flusso di cassa entro la fine del 2027
- Miglioramento del margine lordo (RNS System >78% vs SEEG ~50%)
Le principali iniziative di crescita per il 2026 includono:
- Espansione del sito di servizio del progetto CARE
- Espansione delle indicazioni nella epilessia generalizzata idiopatica resistente ai farmaci
- Espansione nell'epilessia focale pediatrica
- Lancio di prodotti software abilitati all'IA
NeuroPace (NPCE) anunció un re-enfoque estratégico de su cartera de productos, terminando su relación de distribución de productos SEEG con DIXI Medical en el cuarto trimestre de 2025. La empresa mantendrá su enfoque en su línea de productos RNS System.
La empresa reafirmó su guía de ingresos para 2025 y las expectativas de su plan a largo plazo, que incluyen:
- Crecimiento anual compuesto de ingresos superior al 20%
- Objetivo de equilibrio de flujo de caja para finales de 2027
- Mejora del margen bruto (RNS System >78% vs SEEG ~50%)
Las principales iniciativas de crecimiento para 2026 incluyen:
- Expansión del sitio de servicio del proyecto CARE
- Expansión de indicaciones en epilepsia generalizada idiopática resistente a medicamentos
- Expansión en epilepsia focal pediátrica
- Lanzamiento de productos de software habilitados por IA
NeuroPace (NPCE)는 제품 포트폴리오의 전략적 재조정을 발표하며, 2025년 4분기에 DIXI Medical과의 SEEG 제품 유통 관계를 종료한다고 밝혔습니다. 이 회사는 핵심 RNS 시스템 제품 라인에 집중할 것입니다.
회사는 2025년 수익 가이드라인과 장기 계획 기대치를 재확인했으며, 다음을 포함합니다:
- 20% 이상의 수익 연평균 성장률
- 2027년 말까지 현금 흐름 균형 목표
- 총 마진 개선 (RNS 시스템 >78% vs SEEG ~50%)
2026년 주요 성장 이니셔티브는 다음과 같습니다:
- CARE 프로젝트 서비스 사이트 확장
- 약물 저항성 특발성 전신 간질에 대한 적응증 확장
- 소아 국소 간질로의 확장
- AI 지원 소프트웨어 제품 출시
NeuroPace (NPCE) a annoncé un recentrage stratégique de son portefeuille de produits, mettant fin à sa relation de distribution des produits SEEG avec DIXI Medical au quatrième trimestre 2025. L'entreprise maintiendra son attention sur sa ligne de produits RNS System.
L'entreprise a réaffirmé ses prévisions de revenus pour 2025 et ses attentes concernant son plan à long terme, y compris :
- Taux de croissance annuel supérieur à 20%
- Objectif d'équilibre de flux de trésorerie d'ici fin 2027
- Amélioration de la marge brute (RNS System >78% contre SEEG ~50%)
Les principales initiatives de croissance pour 2026 incluent :
- Expansion du site de service du projet CARE
- Extension des indications à l'épilepsie généralisée idiopathique résistante aux médicaments
- Expansion dans l'épilepsie focale pédiatrique
- Lancement de produits logiciels activés par l'IA
NeuroPace (NPCE) hat eine strategische Neuausrichtung seines Produktportfolios angekündigt und wird die Vertriebsbeziehung für SEEG-Produkte mit DIXI Medical im vierten Quartal 2025 beenden. Das Unternehmen wird seinen Fokus auf die Kernproduktlinie RNS System beibehalten.
Das Unternehmen hat seine Umsatzprognose für 2025 und die Erwartungen an den langfristigen Plan bekräftigt, einschließlich:
- Umsatzwachstum von über 20% CAGR
- Cashflow-Breakeven-Ziel bis Ende 2027
- Verbesserung der Bruttomarge (RNS System >78% vs SEEG ~50%)
Wichtige Wachstumsinitiativen für 2026 umfassen:
- Erweiterung des Serviceangebots des Projekts CARE
- Erweiterung der Indikationen für medikamentenresistente idiopathische generalisierte Epilepsie
- Erweiterung in die pädiatrische fokale Epilepsie
- Einführung von KI-unterstützten Softwareprodukten
- Higher gross margins expected with focus on RNS System (>78% vs SEEG ~50%)
- Maintained 2025 revenue guidance and 20%+ CAGR target
- Multiple growth catalysts planned for 2026
- Strategic focus on core RNS System could improve operational efficiency
- Loss of revenue stream from SEEG distribution business
- Six-month transition period may impact operational focus
- Reduced product portfolio diversification
Insights
NeuroPace's decision to wind down its SEEG distribution relationship represents a strategically sound portfolio refinement that should enhance the company's financial profile. The shift to focus exclusively on their proprietary RNS System makes financial sense given the significant margin differential – SEEG products operate at approximately
What's particularly reassuring is NeuroPace maintaining its 2025 revenue guidance despite this transition, signaling the SEEG business isn't critical to near-term performance. More importantly, the company reaffirmed its long-range plan of achieving a
The timing of this announcement (adjustments beginning Q4 2025) demonstrates thoughtful transition planning, giving stakeholders ample notice while ensuring minimal disruption to operations and revenue streams. By concentrating resources on their differentiated core technology, NeuroPace is prioritizing higher-value growth opportunities including Project CARE expansion, indication extensions into generalized epilepsy and pediatric populations, and AI-enabled software products.
This strategic realignment positions NeuroPace to operate more efficiently while deploying commercial resources toward proprietary innovations rather than distributing third-party products in a competitive space with multiple comparable alternatives.
-- Beginning of Wind Down of Stereo EEG (SEEG) Distribution Relationship in Q4 2025 --
-- Maintaining 2025 Revenue Guidance --
-- No Change to Long-Range Plan Expectations of Cash Flow Breakeven by the end of 2027 and Achievement of
MOUNTAIN VIEW, Calif., April 02, 2025 (GLOBE NEWSWIRE) -- NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today reported that as part of a strategic refocusing of its product portfolio on its core, differentiated RNS System product line, it is terminating its distribution relationship for SEEG products and will begin winding down the relationship in the fourth quarter of 2025 and continuing through the first quarter of 2026.
“While we believe that entering into the exclusive distribution agreement with DIXI Medical three years ago was appropriate for NeuroPace at the time, our core growth strategy today has evolved significantly from when the distribution agreement began. We believe that, beginning in 2026, our goals will be best and most efficiently served by having our commercial team focus its resources on the significant current and expanding opportunities associated with our differentiated RNS System,” commented Joel Becker, NeuroPace Chief Executive Officer. “Our long-range plan includes clinical, product and market development initiatives around RNS therapy. We are already making good progress with our site of service expansion through Project CARE, and the 2026 planned indication expansion into the drug-resistant idiopathic generalized epilepsy population, expansion into pediatric focal epilepsy as a new indication, and the launch of differentiated software products in our AI pipeline each represent significant and unique opportunities to drive our long-term growth,” Becker added.
“I believe that we create the most value for the NeuroPace community and stakeholders by focusing on what we are uniquely well positioned to do, which is to make the RNS System the standard of care for the treatment of drug-resistant epilepsy patients. This will be our focus and will free up additional capacity within our commercial organization at the beginning of 2026. I am confident this will lead to more efficient, effective and faster development and execution of our opportunities and establish NeuroPace and the RNS System as the clear leader in the field.”
“Considering the timeline for these activities, we do not currently plan any change to our previously stated 2025 revenue guidance and we are maintaining our long-range plan expectations of
Key Considerations
- The Company is maintaining its 2025 revenue guidance, after taking into consideration the timing of the distribution agreement expiration at the close of Q3 2025 and wind down activities over the six months thereafter, during which the Company will continue selling remaining inventory.
- NeuroPace gross margin is expected to increase as the margin for SEEG distributed products is approximately
50% , while the margin of the RNS System is over78% . - The Company expects significant growth opportunities in 2026, including the ongoing expansion of Project CARE, indication expansion into the drug-resistant idiopathic generalized epilepsy population - which like the patient population treated through CARE does not utilize SEEG products - and drug-resistant pediatric focal epilepsy patient population, and launch of AI enabled software products.
- The SEEG market has comparable products from a number of companies, and NeuroPace is confident that customers will remain well supported.
About NeuroPace, Inc.
Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders.
Forward Looking Statements
This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will” and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. NeuroPace may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: NeuroPace’s expectations, forecasts and beliefs with respect to potential indication expansion for its RNS System and its launch of AI-enabled software, technology and other product development efforts and expansion of Project CARE; the timing of NeuroPace’s planned regulatory submissions and clinical data disclosures; NeuroPace’s use of its cash resources and ability to achieve cash flow breakeven without revenues from the DIXI Medical distribution agreement after its planned expiration; anticipated wind-down activities related to the planned expiration of the DIXI Medical distribution agreement, including with respect to sales of NeuroPace’s remaining SEEG product inventory during the six-month period following the planned expiration of the agreement, and the costs associated with any such activities; NeuroPace’s ability to maintain the gross margin for its RNS System at historical rates; NeuroPace’s expected long-range revenue growth without revenues from the DIXI Medical distribution agreement after its planned expiration; NeuroPace’s ability to achieve its goal of making the RNS System the standard of care for the treatment of drug-resistant epilepsy patients; NeuroPace’s expectations with respect to the benefits of focusing its business, including with respect to faster development and execution on its growth opportunities and the Company’s ability to realize these benefits on the expected timelines or at all. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; uncertainties related to market acceptance and adoption of NeuroPace’s RNS System and impacts to NeuroPace’s revenue for 2025 and in the future and its ability to become the standard of care for the treatment of drug-resistant epilepsy patients; risks that NeuroPace could use its cash resources sooner than expected and may not be able to achieve cash flow breakeven on the anticipated timeline or at all; risks that NeuroPace’s gross margin for its RNS System may be lower than forecast; risks related to regulatory compliance and expectations for regulatory submissions and approvals to expand the market for NeuroPace’s RNS System; risks related to product development, including risks related to the development of AI-powered software; risks that NeuroPace will not be able to meet its long-range plans and revenue projections without DIXI Medical revenue as a result of the planned expiration of the distribution agreement; and other important factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in NeuroPace’s public filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 4, 2025, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace’s views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace.
Investor Contact:
Jeremy Feffer
Managing Director
LifeSci Advisors
jfeffer@lifesciadvisors.com
FAQ
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