Full Press Release Details
electroCore Announces
Third Quarter Financial Results
Revenue growth of 44% over the second
quarter of 2020 and 58% over the third quarter of 2019
Return to sequential revenue growth across
Further strengthened balance sheet
Reduced quarterly cash burn
Company to host conference call and webcast
today, November 12, 2020 at 4:30 pm ET
November 12, 2020 at 4:05 PM EST
BASKING RIDGE, N.J., November 12, 2020
-- electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, today announced third quarter 2020 financial
results and provided an operational update.
Third Quarter 2020 and Recent Highlights
Dan Goldberger, Chief Executive Officer
of electroCore, commented: "During the third quarter, we demonstrated progress in key operating metrics across all of our
revenue channels, most notably the VA and U.S. Department of Defense (DOD), and the U.K., as our team continues to successfully
adapt to an evolving business environment. We believe gammaCore fits well with the rapid growth in telehealth consults driven by
the ongoing pandemic, and in the VA in particular, we were able to generate a 59% sequential increase in paid months of therapy
by leveraging the agency's advanced telehealth capabilities. Similarly, in COVID-19, our recently announced partnership with
Upscript, LLC facilitates access to gammaCore Sapphire CV from the comfort of one's home without having to visit a physician
"With $26 million of cash and marketable
securities as of September 30, our financial condition remains strong. Our net cash used in operations of $4.1million during the
third quarter reflects our relentless drive to be efficient and nimble, and capable of responding quickly to emerging opportunities
and challenges. I am proud of our accomplishments thus far and believe we have built a solid foundation for growth in 2021,"
Mr. Goldberger concluded.
Third Quarter 2020 Financial Results
For the quarter ended September 30, 2020,
electroCore reported net sales of approximately $1.1 million compared to $683,000 in the same period of 2019, and consistent with
the guidance provided in the company's October 13, 2020 business update.
Revenue from the VA and DOD increased 56%
sequentially to $646,000 during the third quarter of 2020 from $415,000 in the second quarter of 2020 and $279,000 in the third
quarter of 2019. Paid months of therapy shipped to the VA and DOD increased 59% sequentially to 1,571 in the third quarter of 2020
from 988 during the second quarter of 2020 and increased 184% as compared to 553 in the third quarter of 2019.
Revenue from outside the U.S. increased
sequentially to $278,000 from $247,000 in the second quarter of 2020 and $188,000 in the third quarter of 2019. Paid months of
therapy shipped outside the U.S. increased 9% sequentially to 1,020 in the third quarter of 2020 from 938 in the second quarter
of 2020 and increased 23% as compared to 828 in the third quarter of 2019.
Total operating expenses in the third quarter
of 2020 were approximately $5.2 million, a reduction of approximately $6.0 million from $11.2 million in the third quarter of 2019.
SG&A expense declined approximately
$3.5 million to $4.6 million in the third quarter of 2020 from approximately $8.1 million in the third quarter of 2019. This decrease
was primarily due to the company's reduction in sales and marketing activities, consistent with its cost reduction plan which
Research and development expense decreased
by approximately $1.7 million to $0.6 million in the third quarter of 2020 from $2.3 million in the third quarter of 2019. This
reduction is consistent with the company's strategy of reducing its near-term investment in research and development.
GAAP net loss in the third quarter of 2020
was $4.5 million as compared to a GAAP net loss of $10.7 million in the third quarter of 2019.
Adjusted EBITDA net loss in the third quarter
of 2020 was a loss of $3.3 million as compared to a loss of $8.7 million in the third quarter of 2019.
The company defines adjusted EBITDA net
loss as GAAP net loss, excluding income tax expense/benefit, stock-compensation expense, 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 release.
Net cash used in the quarter ended September
30, 2020 was approximately $4.1 million, excluding $11.2 million of proceeds received from sales of stock to Lincoln Park Capital,
as compared to $5.2 million in the second quarter of 2020, which excludes the tax benefit received for the sale of New Jersey NOL's
and financing activities, and $7.6 million in the third quarter of 2019.
Cash and cash equivalents and marketable
securities at September 30, 2020 totaled approximately $26.0 million, as compared to approximately $24.1 million at December 31,
Webcast and Conference Call Information
electroCore's management team will
host a conference call today November 12, 2020 beginning at 4:30 p.m. ET. Investors 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:
13711577, or by connecting to the Web: http://public.viavid.com/index.php?id=141806
An archived webcast of the event will be
available on the "Investors" section of the company's website at: www.electrocore.com.
About electroCore, Inc.
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 the
preventative treatment of cluster headache and migraine and acute treatment of migraine and episodic cluster headache.
For more information, visit www.electrocore.com.
(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.
gammaCore 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, the acute treatment of pain associated with migraine headache in adult patients,
and the prevention of migraine in 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.
In 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.
Please refer to the gammaCore Instructions for Use for all of
the important warnings and precautions before using or prescribing this product.
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.
gammaCore 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
gammaCore Sapphire CV has been authorized only for the duration