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Medical Device Firm Maintains Growth Momentum in Q2/22
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electroCore Inc.'s Q2/22 and H1/22 revenues are up quarter over quarter and year over year, respectively, and the upward trend is expected to continue through year-end 2022, noted an H.C. Wainwright & Co. report.

Commercial-stage electroCore Inc. (ECOR:NASDAQ) continued its revenue growth trend in Q2/22, as reported H.C. Wainwright & Co. analyst Dr. Swayampakula Ramakanth.

The bioelectronic medicine company is advancing gammaCore, its noninvasive vagus nerve stimulator, for the treatment of multiple neurologic and metabolic conditions.

Currently, the device is approved (depending on the jurisdiction) for:

  • primary, cluster, and migraine headaches
  • migraine headache prevention
  • paroxysmal hemicrania
  • hemicrania continua

The product has regulatory clearance in the U.S., Canada, Australia, the United Kingdom, and several European countries, among others.

Ramakanth reviewed and commented on the financial numbers electroCore just pre-released. He also shared his expectations for the New Jersey-based firm's revenue in the short and long terms.

He highlighted that electroCore's Q2/22 revenue is an expected $2.1 million ($2.1M), up 11% from $1.9M the previous quarter. H1/22 revenue is also higher, by 60%, year over year.

About $0.5M of the company's total Q2/22 revenue is from commercial sales in the U.S., and this amount is 68% higher than Q1/22 revenue of $0.3M. Business in the States is strong and looks like it will remain that way at least through year-end 2022, Ramakanth noted. It appears as though the company's concerted efforts to expand gammaCore adoption are paying off.

"The continued growth in this channel should help it to become a meaningful revenue stream over the next few years," noted Ramakanth. "We currently project the U.S. business to grow to $83M in 2030 from $7M in 2022."

One returning customer in the U.S. is the federal veterans' affairs and defense departments. Sales to them in Q2/22 of $1.2M are 54% higher than in the previous quarter.

"This continued VA/DoD channel growth bodes well for sustained revenue growth beyond 2022," Ramakanth commented.

Q2/22 revenue from outside the U.S. also rose quarter over quarter, to $0.5M from $0.3M, a 53% increase. Ramakanth forecasts electroCore's ex-U.S. revenue to reach $17M by the end of 2030 from $2M this year.

Looking at total 2022 revenue, Ramakanth estimates the medical device company will finish the year strongly, given its history of robust third and fourth quarters. Specifically, he projects total 2022 revenue of $8.9M, or 64% growth over the company's 2021 revenue of $5.5M.

As for electroCore's balance sheet at the end of Q2/22, it is strong, containing $26.6M in cash and cash equivalents. These funds are sufficient to support operations through Q1/23, purported Ramakanth.

H.C. Wainwright & Co. has a Buy rating and a $2.75 per share price target on electroCore. Its current share price, in comparison, is around $0.64.


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Disclosures for H.C.Wainwright & Co., ElectroCore Inc., July 13, 2022

H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.

I, Swayampakula Ramakanth, Ph.D., Arthur He, Ph.D. and Sean Lee , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of electroCore, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of June 30, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of electroCore, Inc.. Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report. 

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The firm or its affiliates received compensation from electroCore, Inc. for non-investment banking services in the previous 12 months.

The Firm or its affiliates did not receive compensation from electroCore, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

The Firm does not make a market in electroCore, Inc. as of the date of this research report.

The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously.

H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this research report.

H.C. Wainwright & Co., LLC’s and its affiliates’ salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report.

H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.

The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data on the company, industry or security discussed in the report. All opinions and estimates included in this report constitute the analyst’s judgment as of the date of this report and are subject to change without notice.

Securities and other financial instruments discussed in this research report: may lose value; are not insured by the Federal Deposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.

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