NeurAxis Stock Surges After Strong Q3 Earnings and Expanded Coverage

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By Ronald Tech

Shares of NeurAxis, Inc. NRXS have gained 41.2% since it reported earnings for the quarter ended Sept. 30, 2024. This strong performance contrasts with the S&P 500 index, which saw a decline of 0.9% during the same period. Over the past month, NeurAxis stock has risen 17.7%, outperforming the S&P 500’s 2.1% gain.

Financial Performance

NeurAxis reported revenues of $0.7 million in third-quarter 2024, marking a 39.6% increase from $0.5 million in third-quarter 2023. Gross profit grew 38.9% year over year to $0.6 million. Gross margin saw a slight decline of 50 basis points from 85.9% in third-quarter 2023 to 85.4% in the reported quarter. This is due to higher growth in the company’s financial assistance programs that are discounted to patients without insurance coverage compared to the company’s undiscounted full reimbursement customers. Operating loss improved significantly to $1.7 million in third-quarter 2024 from $3 million in third-quarter 2023.

Net loss for the quarter was $1.8 million, a substantial improvement from the $8.6 million loss reported in third-quarter 2023. Loss per share was reduced to $0.25 in third-quarter 2024 from $2.38 in third-quarter 2023, driven by increased sales and the absence of costs associated with the 2023 IPO.

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Other Key Business Metrics

Unit sales of IB-Stim, the company’s flagship device rose 50% during the quarter, driven by expanded insurance coverage and increased patient access. Recent regulatory and reimbursement milestones, such as the FDA’s clearance to expand IB-Stim’s age indication and device limits, are expected to bolster future demand.

NeurAxis expanded its total covered lives to approximately 35 million, a sharp rise from 4.5 million in October 2023. Notable inclusions include coverage by large insurers such as Florida Blue (6 million lives) and several mid-Atlantic BCBS plans (10.5 million lives collectively).

As of Sept. 30, 2024, NeurAxis reported $0.3 million in cash and $147,688 in short-term debt. The company also announced a $5.0 million investment agreement to support liquidity, replacing $3.2 million in previously committed funding.

Neuraxis, Inc. Price, Consensus and EPS Surprise

Neuraxis, Inc. Price, Consensus and EPS Surprise

Neuraxis, Inc. price-consensus-eps-surprise-chart | Neuraxis, Inc. Quote

Management Commentary

NeurAxis CEO Brian Carrico highlighted the company’s strong operational progress, emphasizing a 40% year-over-year revenue growth and the expansion of insurance coverage to approximately 35 million lives. He attributed the performance to clinical evidence, regulatory advancements, and strategic commercialization efforts.

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Factors Influencing Results

Revenue growth in third-quarter 2024 was attributed to volume growth from new and existing full insurance reimbursement customers and growth in financial assistance programs, which provide discounts to patients without insurance coverage. The improvement in operating losses stemmed from the absence of 2023 post-IPO consulting and recruiting services, 2023 incentive bonuses relating to the IPO, and higher sales and gross profit in 2024.

Guidance and Outlook

While specific forward-looking financial guidance was not disclosed, management expressed confidence in ongoing operational momentum. Recent FDA approvals and insurance policy expansions are expected to drive further adoption of IB-Stim. Additionally, the new CPT Category I code for PENFS procedures, effective Jan. 1, 2026, positions the company for enhanced reimbursement capabilities.

Other Developments

In third-quarter 2024, NeurAxis achieved FDA clearance to expand IB-Stim’s target demographic from ages 11-18 to 8-21 years and increased the allowable devices per patient to four per month. Additionally, the company submitted its rectal expulsion device for FDA approval, with an anticipated clearance by the end of 2024.

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