Neuropace Reports 20% Growth in Epilepsy Implant Systems

Edward Kim  |

Video source: YouTube, Neuropace

Neuropace ( NPCE) reported revenue of $11.0 million in the fourth quarter of 2021, a 2% increase from the prior year's period. Initial implant revenue was $8.5 million, a 10% increase from a year ago.

Net loss was $10.7 million for Q4, compared to a net loss of $4.6 million a year ago.

For the full year 2021, Neuropace reported revenue of $45.2 million, up 10% over 2020. Initial implant revenue was $33.7 million for 2021, a 20% increase over 2020.

Net loss for the year was $36.1 million, compared to a net loss of $24.3 million in 2020.

Neuropace's Brain-Responsive Neuromodulation System (RNS) is the only FDA-approved epilepsy device that delivers personalized treatment by responding to abnormal brain activity and providing EEG data to help improve patient care.

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“I am proud of our team’s execution in 2021, as we expanded the number implanting centers to 150 and delivered 20% initial implant revenue growth for the full year,” said Mike Favet, Neuropace CEO.

“We also enrolled our first patient in the adolescent study and received IDE [investigational device exemption] approval for primary generalized epilepsy – both important steps to expand our indication and market opportunity."

Investment thesis

Neuropace went public in a highly anticipated offering in April 2021, raising $117.3 million in gross proceeds at $17 per share via JP Morgan and Morgan Stanley.

The stock soared to $27.38 in its first week of trading, but has since fallen 72% from that early high.

The selloff appears overdone to us, and we think the stock has found its floor at current levels.

  • The RNS system is unique and gaining adoption
  • There is compelling clinical evidence demonstrating improved
  • outcomes over time
  • The addressable market in the US alone for epilepsy treatment is estimated to be $26 billion.
  • The company received Indication expansion into younger patients and generalized epilepsy.
  • 150 level 4 comprehensive epilepsy centers completed an RNS System implant in 2021, a 14% increase over 2020.
  • Revenue growth was impacted by COVID-19, and the company thinks there's a strong backlog of patients desiring the implant.

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