Myomo, INC (NYSE: MYO) released its financial results for the three and six months ending June 30, 2021. In Q2 2021, the company realized a 262% increase in revenue to $3.1 million compared to the second quarter in 2020. The gains came primarily from the sale of 80 units (of the MyoPro) and an increase in the average sell price. Reportedly, a record 38 of those units (almost half) were through insurance authorizations. Furthermore, the company demonstrated an increase in the margin as well as a hefty backlog of 160 units.
The increase in insurance coverage is noteworthy. “Growing number of health insurance plans covering the cost of a MyoPro, with over 20 new payers approving their first device, including several state Medicaid, Medicare Advantage, and commercial plans.” and that the “reimbursement pipeline as of June 30, 2021, consisted of 898 MyoPro units.”
The company still finished the quarter in the red. The main expense for Myomo in Q2 2021 was selling, general, and administrative. The company reports $13.8 million cash on hand which is believed to be sufficient to fund operations into the second half of 2022.
Myomo specializes in home-use powered medical exoskeletons (similar to ReWalk Robotics, which also released its Q2 2021 financial results this week). Unlike ReWalk which specializes in lower-body powered exoskeletons, Myomo focuses on upper body devices. (MyoPro the Assistive Arm Exoskeleton by Myomo Featured in SolidWorks-2016) There is an argument to be made for home-use medical exoskeletons. They could address the need for more dosing and length of physical rehabilitation programs. Some argue, that physical rehabilitation mainly teaches the patients to work around their injury. Home-use powered exoskeletons can encourage the users to keep using their weaker limbs continuously. Potentially, this could result in a different lifestyle and even gains in mobilization.
Five Year Historical Data:
The Myomo Q2 2021 revenue is not the highest on record, but it is a significant jump compared to the same time period last quarter. The company also maintains a consistent loss from operations averaging $2.2M per quarter for the past five years. In conclusion, Myomo’s increasing revenue is showing a positive upwards trend without a corresponding increase in operational loss.
Investors have reacted favorably to the latest financial results and the stock price is trading roughly 10% higher since the latest announcement.
Myomo News Release, August 9, 2021: https://myomo.com/press-releases/
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