Full Press Release Details
Announces Fourth Quarter and Full Year 2020 Financial Results
year 2020 net sales of approximately $3.5 million increased 46% over $2.4 million for full year 2019
reduced net cash usage to $3.7 million in the fourth quarter 2020 versus $4.1 million in the third quarter 2020
2020 with cash and cash equivalents of $22.6 million, excluding $6.9 million raised subsequent to the end of the year
to host conference call and webcast today, March 11, 2021 at 4:30pm ET
11, 2021 at 4:05 PM ET
N.J., March 11, 2021 - electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, today announced
fourth quarter and full year 2020 financial results and provided an operational update.
Quarter 2020 and Recent Highlights
Chief Executive Officer of electroCore, commented: "We had a highly productive fourth quarter across all facets of
our business in spite of the challenges and headwinds of the pandemic. We delivered 38% year-over-year revenue growth in the quarter,
we achieved a major U.S. reimbursement milestone in the establishment of a unique Level II HCPCS code for Non-invasive
vagus nerve stimulator', we signed three ex-U.S. distribution agreements, we continued expanding the gammaCore indication
for use to include adolescents suffering from migraine, we saw the progression of clinical trials in four additional indications:
COVID-19, stroke, post-operative ileus and opioid use disorder, and we realized continued support by NHS England to cover gammaCore
therapy through inclusion in the new NHS Improvement MedTech Funding Mandate.
we were able to achieve all of this while continuing to manage our cash prudently. Our net cash usage for the fourth quarter of
$3.7 million was down from $4.1 million in the third quarter of 2020 and down significantly from $9.4 million in the same period
last year. Our cash balance at December 31, 2020 provides substantial runway to execute our plan into 2022.
ahead, while the course of the pandemic remains difficult to predict, I believe we have taken steps to ensure continued growth
of gammaCore in our core revenue generating channels while working to establish and capitalize on new opportunities.
I believe gammaCore has broad potential utility across a very diverse range of indications, and along with the entire electroCore team,
I remain committed to making this therapy available to every individual who can potentially benefit from it."
Quarter and Full Year 2020 Financial Results
the quarter ended December 31, 2020, electroCore reported net sales of approximately $928,000 compared to $675,000 in the same
period of 2019, and at the upper end of guidance provided in the company's January 11, 2021 business update. For the full
year 2020, the company reported net sales of approximately $3.5 million, as compared to net sales of approximately $2.4 million
for the full year 2019.
from the Department of Veterans Affairs ("VA") and Department of Defense ("DOD") decreased 21% sequentially
to $509,000 in the fourth quarter of 2020 from $646,000 in the third quarter of 2020 and increased 35% as compared to $378,000
in the fourth quarter of 2019. Paid months of therapy shipped to the VA and DOD decreased 22% sequentially to 1,232 in the fourth
quarter of 2020 from 1,571 in the third quarter of 2020 and increased 49% as compared to 829 in the fourth quarter of 2019.
from outside the United States increased sequentially to $311,000 in the fourth quarter of 2020 from $278,000 in the third quarter
and increased 6% as compared to $294,000 in the fourth quarter of 2019. Paid months of therapy shipped outside the United States
increased 12% sequentially to 1,143 in the fourth quarter of 2020 from 1,020 in the third quarter of 2020 and increased 19% as
compared to 961 in the fourth quarter of 2019.
profit for the fourth quarter of 2020 was $109,000 inclusive of an increase of $434,000 in inventory reserves, as compared to
$284,000 for the fourth quarter of 2019. Gross margin for the fourth quarter excluding the increase to inventory reserves was
59%, compared to 42% in the fourth quarter of 2019. Gross margin for the full year 2020 was 50% as compared to 52% for the
full year of 2019. Excluding the increase to inventory reserves, gross margin for full year 2020 was 63%.
operating expenses in the fourth quarter of 2020 were approximately $6.4 million, a reduction of approximately $2.5 million from
$8.9 million in the fourth quarter of 2019. Total operating expenses for the full year 2020 were $26.5 million as compared to
$47.3 million for the full year 2019.
and development expense in the fourth quarter of 2020 was $1.0 million, as compared to $1.6 million for the same period in 2019.
Research and development expenses for the full year 2020 were $4.2 million as compared to $9.9 million for the full
general and administrative expense in the fourth quarter of 2020 was $5.4 million, as compared to $7.3 million for the same period
in 2019. Selling, general and administrative expense for the full year 2020 was $21.8 million as compared to $35.4 million for
net loss in the fourth quarter of 2020 was $6.3 million as compared to a GAAP net loss of $8.5 million in the fourth quarter of
2019. GAAP net loss for the full year 2020 was a loss of $23.5 million as compared to a GAAP net loss of $45.1 million for the
EBITDA net loss in the fourth quarter of 2020 was a loss of $4.3 million as compared to a loss of $6.7 million in the fourth quarter
of 2019. Adjusted EBITDA net loss for the full year 2020 was a loss of $18.4 million as compared to an adjusted EBITDA net loss
of $39.0 million for the full year 2019.
company defines adjusted EBITDA net loss as GAAP net loss, excluding income tax expense/benefit, depreciation and amortization,
stock-compensation expense, write-off of right of use operating lease, increase in inventory reserves, restructuring and other
severance related charges, legal fees associated with stockholders' litigation and total other income/expense. A reconciliation
of GAAP net loss to Non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in this press
cash used in the quarter ended December 31, 2020 was approximately $3.7 million, as compared to $4.1 million in the third quarter
of 2020, and $9.4 million in the fourth quarter of 2019. Net cash used for the full year 2020 was $20.2 million as compared to
net cash used of $44.5 million for the full year 2019.
and cash equivalents and marketable securities at December 31, 2020 totaled approximately $22.6 million, as compared to approximately
$24.1 million at December 31, 2019. Subsequent to the end of the fourth quarter, the company raised approximately $6.9 million
through the company's previously announced stock purchase agreement, resulting in a pro forma cash and cash equivalents
and marketable securities balance of $29.5 million as of December 31, 2020.
Conference Call Information
electroCore's management
team will host a conference call today, March 11, 2021, beginning at 4:30 p.m. ET.
interested in listening to the conference call or webcast may do so by dialing 877-407-4018 for domestic callers
or 201-689-8471 for international callers, using conference ID: 13715729, or through the following link: http://public.viavid.com/index.php?id=143276
archived webcast of the event will be available on the "Investors" section of the company's website
at: www.electrocore.com.
About electroCore, Inc.
is a commercial stage bioelectronic medicine company dedicated to improving patient outcomes through its platform non-invasive vagus nerve
stimulation therapy initially focused on the treatment of multiple conditions in neurology. The company's current indications
are for the preventative treatment of cluster headache and migraine and acute treatment of migraine and episodic cluster
more information, visit www.electrocore.com.About gammaCoreeTM
(nVNS) is the first non-invasive, hand-held medical therapy applied at the neck as an adjunctive therapy to treat migraine
and cluster headache through the utilization of a mild electrical stimulation to the vagus nerve that passes through the skin.
Designed as a portable, easy-to-use technology, gammaCore can be self-administered by patients, as needed, without the potential
side effects associated with commonly prescribed drugs. When placed on a patient's neck over the vagus nerve, gammaCore
stimulates the nerve's afferent fibers, which may lead to a reduction of pain in patients.
is FDA cleared in the United States for adjunctive use for the preventive treatment of cluster headache in adult patients, the
acute treatment of pain associated with episodic cluster headache in adult patients, and the acute and preventive treatment of
migraine in adolescent (ages 12 and older) and adult patients. gammaCore is CE-marked in the European Union for the acute and/or
prophylactic treatment of primary headache (Migraine, Cluster Headache, Trigeminal Autonomic Cephalalgias and Hemicrania Continua)
and Medication Overuse Headache in adults.
| gammaCore is contraindicated for patients with: | ||
| An active implantable medical device, such as a pacemaker, hearing aid implant, or any implanted electronic device | ||
| A metallic device, such as a stent, bone plate, or bone screw, implanted at or near the neck | ||
| An open wound, rash, infection, swelling, cut, sore, drug patch, or surgical scar(s) on the neck at the treatment location |
| Safety and efficacy of gammaCore have not been evaluated in the following patients: | ||
| Patients diagnosed with narrowing of the arteries (carotid atherosclerosis) | ||
| Patients who have had surgery to cut the vagus nerve in the neck (cervical vagotomy) | ||
| Pediatric patients (younger than 12 years) | ||
| Pregnant women | ||
| Patients with clinically significant hypertension, hypotension, bradycardia, or tachycardia |
the US, the FDA has not cleared gammaCore for the treatment of pneumonia and/or respiratory disorders such as acute respiratory
stress disorder associated with COVID-19.
refer to the gammaCore Instructions for Use for all of the important warnings and precautions before using or prescribing this
gammaCore SapphireTM CV
has received Emergency Use Authorization (EUA) from the FDA for acute use at home or in a healthcare setting to treat adult patients
with known or suspected COVID-19 who are experiencing exacerbation of asthma-related dyspnea and reduced airflow, and for whom
approved drug therapies are not tolerated or provide insufficient symptom relief as assessed by their healthcare provider, by
using non-invasive Vagus Nerve Stimulation (nVNS) on either side of the patient's neck during the Coronavirus
Disease 2019 (COVID-19) pandemic.
Sapphire CV has neither been cleared nor approved for acute use at home or in a healthcare setting to treat adult patients with
known or suspected COVID-19 who are experiencing exacerbation of asthma-related dyspnea and reduced airflow, and for whom approved
drug therapies are not tolerated or provide insufficient symptom relief as assessed by their healthcare provider, by using non-invasive
Vagus nerve Stimulation (nVNS) on either side of the patient's neck during the Coronavirus Disease 2019 (COVID-19) pandemic.