NeuroPace Provides Update on Tariff Status
NeuroPace (NPCE) has provided an update regarding its exposure to implemented tariffs, stating that it expects minimal impact on its operations and financial results. The company attributes this exposure to manufacturing and selling the majority of its devices within the United States, with minimal international supply chain activities for its RNS System.
The company also expects no material impact on gross margin for DIXI Medical SEEG products and is reiterating its gross margin guidance for 2025. NeuroPace has previously announced the termination of its SEEG distribution agreement with DIXI Medical, effective October 1, 2025, followed by a six-month wind-down period through Q1 2026.
The company will report its Q1 2025 financial results on May 13, 2025, after market close, followed by a conference call at 1:30 p.m. Pacific Time.
NeuroPace (NPCE) ha fornito un aggiornamento riguardo alla sua esposizione ai dazi applicati, dichiarando di prevedere un impatto minimo sulle sue operazioni e sui risultati finanziari. L'azienda attribuisce questa situazione al fatto che la maggior parte dei suoi dispositivi viene fabbricata e venduta negli Stati Uniti, con attività di catena di approvvigionamento internazionale limitate per il suo sistema RNS.
La società prevede inoltre nessun impatto significativo sul margine lordo dei prodotti SEEG di DIXI Medical e ribadisce le sue previsioni sul margine lordo per il 2025. NeuroPace ha già annunciato la cessazione dell'accordo di distribuzione SEEG con DIXI Medical, che entrerà in vigore il 1° ottobre 2025, seguita da un periodo di chiusura graduale di sei mesi fino al primo trimestre 2026.
L'azienda comunicherà i risultati finanziari del primo trimestre 2025 il 13 maggio 2025, dopo la chiusura dei mercati, seguiti da una conference call alle 13:30 ora del Pacifico.
NeuroPace (NPCE) ha proporcionado una actualización sobre su exposición a los aranceles implementados, indicando que espera un impacto mínimo en sus operaciones y resultados financieros. La empresa atribuye esta exposición a que fabrica y vende la mayoría de sus dispositivos dentro de los Estados Unidos, con actividades mínimas en la cadena de suministro internacional para su sistema RNS.
La compañía también espera que no haya un impacto material en el margen bruto de los productos SEEG de DIXI Medical y está reiterando su guía de margen bruto para 2025. NeuroPace anunció previamente la terminación de su acuerdo de distribución SEEG con DIXI Medical, efectivo a partir del 1 de octubre de 2025, seguido de un período de cierre gradual de seis meses hasta el primer trimestre de 2026.
La empresa reportará sus resultados financieros del primer trimestre de 2025 el 13 de mayo de 2025, después del cierre del mercado, seguido de una conferencia telefónica a la 1:30 p.m., hora del Pacífico.
NeuroPace (NPCE)는 시행된 관세에 대한 노출 현황을 업데이트하며, 운영 및 재무 결과에 미치는 영향이 최소화될 것으로 예상한다고 밝혔습니다. 회사는 대부분의 장치를 미국 내에서 제조 및 판매하고 있으며, RNS 시스템에 대한 국제 공급망 활동이 제한적이라는 점을 이 노출의 이유로 들고 있습니다.
또한 DIXI Medical SEEG 제품의 총이익률에 중대한 영향이 없을 것으로 예상하며, 2025년 총이익률 가이던스를 재확인했습니다. NeuroPace는 2025년 10월 1일부로 DIXI Medical과의 SEEG 유통 계약 종료를 이미 발표했으며, 2026년 1분기까지 6개월간의 단계적 종료 기간을 둘 예정입니다.
회사는 2025년 1분기 재무 결과를 2025년 5월 13일 장 마감 후 발표하며, 이후 태평양 표준시 기준 오후 1시 30분에 컨퍼런스 콜을 진행할 예정입니다.
NeuroPace (NPCE) a fourni une mise à jour concernant son exposition aux tarifs appliqués, indiquant qu'elle s'attend à un impact minimal sur ses opérations et résultats financiers. L'entreprise attribue cette exposition au fait que la majorité de ses dispositifs sont fabriqués et vendus aux États-Unis, avec des activités limitées dans la chaîne d'approvisionnement internationale pour son système RNS.
La société ne prévoit également aucun impact significatif sur la marge brute des produits SEEG de DIXI Medical et réitère ses prévisions de marge brute pour 2025. NeuroPace a précédemment annoncé la résiliation de son accord de distribution SEEG avec DIXI Medical, effective au 1er octobre 2025, suivie d'une période de cessation progressive de six mois jusqu'au premier trimestre 2026.
L'entreprise publiera ses résultats financiers du premier trimestre 2025 le 13 mai 2025, après la clôture des marchés, suivie d'une conférence téléphonique à 13h30, heure du Pacifique.
NeuroPace (NPCE) hat ein Update zu seiner Exponierung gegenüber eingeführten Zöllen gegeben und erklärt, dass es mit minimalen Auswirkungen auf den Betrieb und die Finanzergebnisse rechnet. Das Unternehmen führt diese Exponierung darauf zurück, dass der Großteil seiner Geräte in den Vereinigten Staaten hergestellt und verkauft wird, mit minimalen internationalen Lieferkettenaktivitäten für sein RNS-System.
Das Unternehmen erwartet zudem keine wesentlichen Auswirkungen auf die Bruttomarge der DIXI Medical SEEG-Produkte und bestätigt seine Bruttomargenprognose für 2025. NeuroPace hat bereits die Beendigung seines SEEG-Vertriebsvertrags mit DIXI Medical zum 1. Oktober 2025 angekündigt, gefolgt von einer sechsmonatigen Abwicklungsphase bis zum ersten Quartal 2026.
Das Unternehmen wird seine Finanzergebnisse für das erste Quartal 2025 am 13. Mai 2025 nach Börsenschluss veröffentlichen, gefolgt von einer Telefonkonferenz um 13:30 Uhr pazifischer Zeit.
- Minimal impact expected from tariffs on operations and financial results
- Gross margin guidance for 2025 maintained
- international supply chain exposure due to US-based manufacturing
- Termination of DIXI Medical SEEG distribution agreement effective October 2025
Insights
NeuroPace's tariff update offers reassurance amidst ongoing trade policy uncertainties. The company's disclosure that tariffs will have minimal impact on operations and financial results stems from its predominantly US-based manufacturing and domestic sales strategy for its RNS System. This business model creates natural insulation from international trade disruptions that might otherwise affect margins.
Most significantly, management has reaffirmed its gross margin guidance for fiscal year 2025, indicating confidence in maintaining profitability targets despite macroeconomic headwinds. While the precise numerical guidance isn't restated in this release, the reaffirmation suggests stability in their financial outlook.
The company also clarified that it expects no material impact on gross margin for DIXI Medical SEEG products. This is particularly relevant given NeuroPace's previously announced termination of its SEEG distribution agreement with DIXI Medical (effective October 2025, with a wind-down through Q1 2026).
For investors concerned about supply chain vulnerabilities in the medical device sector, this announcement represents evidence that companies with domestically-concentrated operations may experience fewer disruptions from trade tensions. The minimal expected impact suggests NeuroPace has effectively structured its operations to withstand certain external pressures, though the announcement acknowledges that "specific policies and timing of implementation remain fluid."
NeuroPace presents a textbook example of supply chain resilience through geographical concentration. Their announcement reveals a strategic advantage: by manufacturing and selling "the vast majority" of devices within the United States, they've created a natural buffer against tariff fluctuations that impact cross-border commerce.
The company's international supply chain exposure for its RNS System represents a deliberate risk mitigation strategy. While many medical device manufacturers have embraced global sourcing to reduce costs, NeuroPace's domestic focus now serves as a competitive strength in an era of trade uncertainty.
Their statement about DIXI Medical SEEG products having no material tariff impact on gross margin requires attention in context of their distribution agreement termination. The six-month wind-down period (through Q1 2026) appears strategically timed to minimize disruption while potentially allowing for supply chain reconfiguration.
The company's confidence in maintaining gross margin guidance suggests effective supply chain mapping and scenario planning. However, their acknowledgment that "specific policies and timing of implementation remain fluid" indicates they maintain appropriate caution. For medical device companies, where component consistency and reliability are paramount for regulatory compliance, such supply chain stability represents more than financial protection – it ensures continuous availability of life-critical technologies.
-- Minimal expected impact to operations and financial results --
-- Company to report first quarter 2025 financial results on May 13, 2025 --
MOUNTAIN VIEW, Calif., April 14, 2025 (GLOBE NEWSWIRE) -- NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today provided an update on its exposure to tariffs that have been implemented. While specific policies and timing of implementation remain fluid, NeuroPace expects minimal impact to its operations and financial results.
Specifically, NeuroPace manufactures and sells the vast majority of its devices in the United States and has limited supply chain activities outside the United States for its RNS System. Similarly, the company expects no material impact on gross margin for DIXI Medical SEEG products. As a result, NeuroPace expects minimal impact to its gross margin for fiscal year 2025 and is reiterating its gross margin guidance for 2025. NeuroPace previously announced terminating its SEEG distribution agreement with DIXI Medical effective October 1, 2025 followed by a six-month wind down period through the first quarter of 2026.
In addition, NeuroPace announced that it will report financial results for the first quarter of 2025 after market close on Tuesday, May 13, 2025. The company’s management will host a corresponding conference call beginning at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at (click here). Individuals interested in participating in the call via telephone may access the call by dialing +1-877-407-3982 and referencing Conference ID 13752958. The webcast will be archived on the company’s investor relations website (click here) and will be available for replay for at least 90 days after the event.
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 about the impact of the U.S. government’s tariffs on the Company’s supply chain, operations, 2025 financial performance, and specifically on the Company’s gross margin and revenue guidance; 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 despite imposed tariffs; 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 the scale and potential impact of the U.S. government’s tariffs; risks that the impact of the U.S. government’s tariffs will be greater than anticipated and negatively affect the Company’s operations and ability to generate the predicted revenues under the 2025 revenue guidance; 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 and more negatively impacted by tariffs 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 expectations regarding the impact of tariffs on the DIXI Medical revenue; 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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