Neuronetics Boasts 12% Revenue Increase, Expands Depression Treatment Sector

Neuronetics, Inc

MALVERN, PA — In a recent disclosure, Pennsylvania-based biotech firm Neuronetics (NASDAQ: STIM) announced its first-quarter financial performance for 2024, revealing a promising 12% increase in revenue compared to the first quarter of 2023. The company, renowned for its technological innovations in health, reported a revenue turnover of $17.4 million for the quarter.

A highlight of the report is Neuronetics’ success in the U.S. therapy session market, where revenues grew by 22%. Additionally, the company reported U.S. NeuroStar Advanced Therapy system revenue of $3.3 million for the current quarter due to 41 system shipments.

Neuronetics also introduced its NeuroStar Advanced Therapy to the adolescent market, receiving FDA approval for use as a primary add-on treatment for Major Depressive Disorder (MDD) in individuals aged 15-21. This novel treatment option presents the potential to revolutionize the mental health landscape for adolescents, a demographic burdened with limited treatment selections for MDD.

“NeuroStar is now the first and only TMS treatment to be cleared for use as first-line, adjunct therapy for the treatment of major depressive disorder in adolescent patients aged 15-21,” expressed Keith J. Sullivan, President and CEO of Neuronetics. This sentiment highlights the company’s strategy to fill the gap in therapy options for a growing mental health issue, subsequently expanding their market reach by 35%.

Neuronetics further made headway by launching the second and third cohort of its “Better Me Guarantee Provider” pilot program, forging an exclusive commercial partnership with Transformations Care Network (TCN), and treating over 175,000 global patients through 6.4 million treatment sessions.

Despite a 14% decrease in U.S. NeuroStar Advanced Therapy System revenue, down to $3.3 million from $3.9 million in the first quarter of 2023, Neuronetics showed resilience. This revenue decline exemplifies the impacts of credit hurdles and cash flow concerns triggered by Change Health’s cyberattack, demonstrating the scale of problems posed by cybersecurity incidents on healthcare providers.

READ:  NEXGEL Reports Double-Digit Revenue Growth Amid Strategic Expansion

Neuronetics’ commitment to scaling its operation is evident in the $19.9 million spent on operating expenses during the first quarter of 2024, a decrease of 7% compared to the first quarter of 2023. Moreover, the company reported a net loss of $7.9 million for Q1 2024 – an improvement from the net loss of $10.5 million in Q1 2023.

The firm also offered a business outlook for the remainder of 2024. For the second quarter, Neuronetics projects total worldwide revenue to reach between $18.0 million and $19.0 million. For the full year, the company anticipates total worldwide revenue between $78.0 million and $80.0 million. Projected operating expenses for 2024 are expected to be within the range of $80.0 million to $84.0 million.

Neuronetics’ first-quarter performance indicates a strong commercial strategy in operation, with a focus on expanding its therapeutic systems and patient treatment revenues. The firm’s FDA-cleared NeuroStar Advanced Therapy represents a positive step in addressing the growing problem of adolescent depression, suggesting a bright future for both the company and its stakeholders.

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.