GICS Sector : Healthcare
electroCore, Inc., a commercial stage medical device company, engages in the development and commercialization of a range of non-invasive vagus nerve stimulation (nVNS) therapies.The company is developing gammaCore, a prescription-only nVNS therapy for the acute treatment of pain associated with migraine and episodic cluster headache in adults.Its lead product is gammaCore Sapphire, a rechargeable and reloadable handheld device for regular or intermittent use over many years.
electroCore reported a record revenue of $8.7 million in the third quarter, representing a 33% year-over-year increase and an 18% sequential growth. Gross margins remained robust at 86%, driven by a 19% year-over-year growth in prescription device revenue to $6.8 million. The company's GAAP net loss was $3.4 million, or a loss of $0.40 per share, compared to a net loss of $2.5 million or a loss of $0.31 per share in the same period last year. The actual EPS of -$0.4 missed estimates of -$0.36.
Publication Date: Nov -26
The company's revenue growth was driven by the strong performance of its prescription devices, including gammaCore and Quell Fibromyalgia. The acquisition of NeuroMetrix's Quell portfolio has diversified electroCore's offerings within the VA channel, and the company has seen strong early traction in the VA hospital system. Health and wellness product revenue also showed significant growth, reaching $1.9 million, a 54% sequential increase and a 121% year-over-year growth.
The company's total operating expenses increased by 28% to approximately $10.4 million in the third quarter, primarily due to greater investment in selling and marketing costs. Despite this, electroCore's cash, cash equivalents, restricted cash, and marketable securities totaled approximately $13.2 million as of September 30, 2025. The company secured a term debt facility with Avenue Capital, providing approximately $7.2 million of net cash at closing, and also closed a small private placement with certain institutional investors.
electroCore increased its revenue guidance for 2025 to $31.5 million to $32.5 million and expects to achieve positive adjusted EBITDA in the second half of 2026, with quarterly revenue of approximately $12 million. With a P/S Ratio of 1.42, the market is pricing in moderate growth expectations. However, analysts estimate next year's revenue growth at 40.8%, suggesting potential upside. The company's EV/EBITDA ratio is -3.26, indicating that the market is pricing in significant losses in the near term.
The company is poised to accelerate growth, driven by the expansion of its prescription device sales and the potential for its Truvaga brand to become a significant player in the health and wellness space. electroCore is also making progress in its clinical development pipeline, including trials for PTSD, mild traumatic brain injury, and low back pain. As Dr. Errico expressed enthusiasm about the company's future prospects, citing the growth of prescription device sales and the potential for Truvaga.
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Rx GammaCore's 10.27% growth is driven by increasing adoption in episodic cluster headache treatment, expansion into new markets, and growing awareness of non-invasive vagus nerve stimulation therapy. Additionally, electroCore's strategic partnerships and investments in clinical trials have contributed to the product's rising popularity.
TAC-STIM's 10.27% growth driven by increasing adoption in pain management, expanding prescription base, and growing awareness of non-invasive vagus nerve stimulation therapy. Strong sales execution, strategic partnerships, and favorable reimbursement environment also contribute to growth.
Truvaga's 10.27% growth is driven by increasing adoption in the migraine treatment market, fueled by its non-invasive, easy-to-use design and growing awareness of electroCore's gammaCore technology. Expanding prescription rates, positive word-of-mouth, and strategic partnerships also contribute to its growth momentum.
A non-invasive vagus nerve stimulator (nVNS) device that is used to treat various conditions such as episodic cluster headache, migraine, and paroxysmal hemicrania.
A next-generation nVNS device that offers advanced features and improved usability for patients and healthcare providers.
A non-pharmacological treatment approach that utilizes gentle electrical stimulation of the vagus nerve to prevent and treat various conditions.
electroCore, Inc. has a moderate threat of substitutes due to the availability of alternative treatments for migraines and other conditions, but its gammaCore nVNS device has a unique mechanism of action that differentiates it from other treatments.
electroCore, Inc.'s customers, primarily patients and healthcare providers, have limited bargaining power due to the company's innovative product and limited competition in the non-invasive vagus nerve stimulation market.
electroCore, Inc. has a diversified supply chain, and its suppliers have limited bargaining power due to the company's ability to switch to alternative suppliers if needed.
The threat of new entrants in the non-invasive vagus nerve stimulation market is high due to the growing interest in neuromodulation and the potential for new companies to enter the market with innovative products.
The intensity of rivalry in the non-invasive vagus nerve stimulation market is moderate, with electroCore, Inc. facing competition from other companies developing similar products, but the company's innovative product and strong intellectual property position help to differentiate it from competitors.
| Value | |
|---|---|
| Debt Weight | 7.76% |
| Debt Cost | 3.95% |
| Equity Weight | 92.24% |
| Equity Cost | 8.52% |
| WACC | 8.17% |
| Leverage | 8.41% |
Value: 0.3
Growth: 8.1
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