Corindus
Vascular Robotics, Inc. (NYSE American: CVRS), a leading developer
of precision vascular robotics, today reported financial results for its
first quarter ended March 31, 2019.
Recent Financial Highlights and Business Accomplishments:
-
Revenue totaled $3.0 million during the first quarter of 2019,
including sale and installation of nine CorPath GRX Systems; -
Recorded purchase orders for 11 CorPath GRX Systems, an increase of
83% compared to purchase orders received in Q4 2018 and 267% growth
compared to the purchase orders received in Q1 2018; -
Sold 602 single-use cassettes in the quarter, generating revenue of
nearly $0.3 million; -
Completed the first-ever clinical robotic-assisted percutaneous
coronary intervention (PCI) procedures in Japan in partnership with
Takafumi Ueno, MD, PhD, Director of Interventional Cardiology, Center
of Cardiovascular Disease, Kurume University Hospital, marking initial
enrollment in a post-market study of CorPath GRX; -
Received CE mark for a neurovascular indication, allowing the Company
to sell neurovascular robots in 33 countries that accept CE mark; - Received an order for the first CorPath GRX System in Italy;
-
Continued advancement of co-development and co-commercialization
partnership discussions to advance the neurovascular robotic platform
with remote capabilities; and -
Raised approximately $19.8 million in gross proceeds in a private
placement sale of unregistered Corindus shares to a large
institutional investor and existing investors (Hudson Executive
Capital and BioStar Ventures):-
Per the terms of the transaction, Corindus was required to
register the investor-owned shares on a Form S-3 Registration
Statement, for which we plan to file the final prospectus tomorrow. -
Although now registered for potential sale by the investors
sometime in the future, the shares sold in this transaction
continue to be subject to the six-month lockup period required in
the private placement transaction.
-
Per the terms of the transaction, Corindus was required to
“We are pleased with the positive trends in adoption and usage of our
robotic technology during the first quarter of 2019. The eleven purchase
orders for the CorPath GRX System received and a record number of
disposable cassettes in the quarter reflect our continued momentum.
Customers are also increasingly opting for service agreements,
reflecting their commitment to robotic procedures over the long-term,”
said Mark Toland, President and Chief Executive Officer.
“We continue to build out our global footprint with new installations in
Japan and Europe and believe the addition of CE mark for neurovascular
treatment will enable us to expand our opportunities in the European
markets. Ongoing demonstrations at multiple medical conferences continue
to drive demand, as physicians and hospital administrators increasingly
embrace the power of robotics today, with potential to overcome
geographic disparities through access to life-saving interventions
tomorrow. 2019 is shaping up to be an exciting year of growth for
Corindus,” concluded Toland.
First Quarter 2019 Financial Results
Revenue in the first quarter of 2019 totaled $3.0 million, compared to
$1.5 million in the same period of the prior year. During the quarter,
Corindus installed nine new CorPath GRX Systems, increasing the
installed base of CorPath GRX to 61 systems at the end of the quarter.
Two additional units (including one system upgrade) were ordered but not
installed as of March 31, 2019.
Gross profit in the first quarter of 2019 totaled $0.6 million compared
to a loss of $0.4 million in the first quarter of 2018.
Selling, general and administrative expenses totaled $7.1 million in the
first quarter of 2019, compared to $7.5 million in the first quarter of
2018.
Research and development expenses totaled $2.9 million for the first
quarter of 2019, compared to $2.1 million in the first quarter of 2018.
Net loss totaled $9.7 million in the first quarter of 2019, compared to
a net loss of $10.1 million in the first quarter of 2018.
Cash and cash equivalents as of March 31, 2019 were $37.8 million. In Q1
2019, Corindus completed a private placement transaction, raising an
aggregate amount of $19.8 million in gross proceeds.
Webcast and Conference Call Information
Management will host a conference call and webcast today beginning at
4:30pm EDT to discuss financial results and recent business developments.
Investors interested in listening to the conference call may do so by
dialing (833) 286-5802 (for domestic callers) or (647) 689-4447 (for
international callers), using Conference ID: 5649418 To listen to a live
webcast, please visit the “Investor Relations” section of the Company’s
website at: www.corindus.com.
Following the call, a replay will be available on the Investor Relations
section of the Company’s website.
About Corindus Vascular Robotics, Inc.
Corindus
Vascular Robotics, Inc. is a global technology leader in
robotic-assisted vascular interventions. The Company’s CorPath®
platform is the first FDA-cleared medical device to bring robotic
precision to percutaneous coronary and vascular procedures. CorPath GRX
is the second-generation robotic-assisted technology offering
enhancements to the platform by adding important key upgrades that
increase precision, improve workflow, and extend the capabilities and
range of procedures that can be performed robotically. We are focused on
developing innovative robotic solutions to revolutionize treatment of
emergent conditions by providing specialized and timely medical care to
patients around the world. For additional information, visit www.corindus.com,
and follow @CorindusInc.
Forward-Looking Statements
Statements made in this release that are not statements of historical
or current facts are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements may involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements
of Corindus to be materially different from historical results or from
any future results or projections expressed or implied by such
forward-looking statements. Accordingly, readers should not place undue
reliance on any forward-looking statements. In addition to statements
that explicitly describe such risks and uncertainties, readers are urged
to consider statements in the conditional or future tenses or that
includes terms such as “believes,” “belief,” “expects,” “estimates,”
“intends,” “anticipates” or “plans” to be uncertain and forward-looking.
Forward-looking statements may include comments as to Corindus’ beliefs
and expectations as to future events and trends affecting its business
and are necessarily subject to uncertainties, many of which are outside
Corindus’ control.
Examples of such statements include statements regarding or such as:
- That the Company plans to file a final prospectus tomorrow;
-
That the addition of CE mark for neurovascular treatment will
enable us to expand our opportunities in the European markets; -
That physicians and hospitals will increasingly embrace the power
of robotics; -
The potential for robotics to overcome geographic disparities
through access to life-saving interventions; and -
That 2019 is shaping up to be an exciting year of growth for
Corindus.
Important factors that could cause actual results to differ
materially from those indicated by such forward-looking statements are
described in the sections titled “Risk Factors” in the Company’s filings
with the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well
as reports on Form 8-K, including, but not limited to the following: our
ability to expand our technology platform and achieve the advances
necessary for telestenting and remote procedures, including in humans;
our ability to expand our technology platform for use in other segments
of the vascular intervention market, including neurointerventional and
other more complex cardiac interventions; obtaining necessary regulatory
approvals for the use on humans and marketing of our products in the
United States and in other countries, including for stroke and other
neurovascular interventions; the rate of adoption of our CorPath System
and the rate of use of our cassettes; risks associated with market
acceptance, including pricing and reimbursement; our ability to enforce
our intellectual property rights; our need for additional funds to
support our operations; our ability to manage expenses and cash flow;
factors relating to engineering, regulatory, manufacturing, sales and
customer service challenges; potential safety and regulatory issues that
could slow or suspend our sales; and the effect of credit, financial and
economic conditions on capital spending by our potential customers.
Forward looking statements speak only as of the date they are made.
Corindus undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise that occur after that date. More information
is available on Corindus’ website at http://www.corindus.com.
| CORINDUS VASCULAR ROBOTICS, INC. | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2019 | 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 37,760 | $ | 23,849 | ||||
| Accounts receivable | 3,861 | 4,599 | ||||||
| Inventories, net | 1,866 | 2,508 | ||||||
| Prepaid expenses and other current assets | 1,035 | 447 | ||||||
| Total current assets | 44,522 | 31,403 | ||||||
| Property and equipment, net | 1,793 | 1,779 | ||||||
| Operating lease right-of-use asset | 1,028 | – | ||||||
| Deposits and other assets | 317 | 343 | ||||||
| Total assets | $ | 47,660 | $ | 33,525 | ||||
| Liabilities, preferred stock and stockholders’ equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,627 | $ | 3,591 | ||||
| Accrued expenses | 3,443 | 3,292 | ||||||
| Deferred revenue | 734 | 662 | ||||||
| Current portion of long-term debt | 1,981 | 1,011 | ||||||
| Current portion of operating lease liability | 580 | – | ||||||
| Current portion of finance lease liability | 58 | 56 | ||||||
| Total current liabilities | 9,423 | 8,612 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, net of current portion | 362 | 285 | ||||||
| Long-term debt, net of current portion | 12,194 | 10,774 | ||||||
| Long-term operating lease liability, net of current portion | 542 | – | ||||||
| Long-term finance lease liability, net of current portion | 31 | 46 | ||||||
| Other liabilities | – | 62 | ||||||
| Total long-term liabilities | 13,129 | 11,167 | ||||||
| Total liabilities | 22,552 | 19,779 | ||||||
| Commitments and contingencies | ||||||||
| Total preferred stock | 23,699 | 22,952 | ||||||
| Total stockholders’ equity (deficit) | 1,409 | (9,206 | ) | |||||
| Total liabilities, preferred stock and stockholders’ equity (deficit) | $ | 47,660 | $ | 33,525 | ||||
| CORINDUS VASCULAR ROBOTICS, INC. | |||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|||||||||
| (In thousands, except share and per share amounts) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2019 | 2018 | ||||||||
| Revenue: | |||||||||
| Systems | $ | 2,494 | $ | 970 | |||||
| Capital upgrades | – | 176 | |||||||
| Cassettes and accessories | 291 | 235 | |||||||
| Services | 251 | 104 | |||||||
| Total revenue | 3,036 | 1,485 | |||||||
| Cost of revenue | 2,414 | 1,929 | |||||||
| Gross profit (loss) | 622 | (444 | ) | ||||||
| Operating expenses: | |||||||||
| Research and development | 2,876 | 2,135 | |||||||
| Selling, general and administrative | 7,147 | 7,455 | |||||||
| Total operating expense | 10,023 | 9,590 | |||||||
| Operating loss | (9,401 | ) | (10,034 | ) | |||||
| Other income (expense) | |||||||||
| Warrant revaluation | – | 30 | |||||||
| Interest, net | (270 | ) | (44 | ) | |||||
| Other, net | (6 | ) | (2 | ) | |||||
| Total other income (expense), net | (276 | ) | (16 | ) | |||||
| Net loss | $ | (9,677 | ) | $ | (10,050 | ) | |||
|
Accretion of beneficial conversion feature of Series A preferred stock |
– | (5,236 | ) | ||||||
| Dividends on preferred stock | (747 | ) | (125 | ) | |||||
| Net loss attributable to common stockholders | $ | (10,424 | ) | $ | (15,411 | ) | |||
|
Net loss per share attributable to common stockholders–basic and diluted |
$ | (0.05 | ) | $ | (0.08 | ) | |||
| Weighted-average common shares used in computing | |||||||||
|
net loss per share attributable to common stockholders–basic and diluted |
196,691,907 | 188,771,216 | |||||||
| Comprehensive loss | $ | (9,677 | ) | $ | (10,050 | ) | |||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190507005995/en/