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For the third quarter of 2024, NeuroMetrix, Inc. NURO incurred a net loss per share of 75 cents, narrower than the prior-year quarter’s net loss of $1.66.
Total revenues for the quarter were $0.6 million, a decrease of approximately 51% from $1.2 million in the third quarter of 2023. The decline in revenues was primarily attributed to a decrease in sales of DPNCheck, one of the company's core diagnostic tools.
NeuroMetrix’s third-quarter 2024 results reflect a challenging environment, marked by declining revenues and reduced gross profit. The significant revenue drop was primarily linked to the DPNCheck product’s waning demand within Medicare Advantage markets, impacted by the Centers for Medicare & Medicaid Services’ (CMS) reimbursement policy changes. Meanwhile, the company’s Quell Fibromyalgia business, which offers solutions for chronic pain, showed promising growth during the quarter.
Despite the revenue drop, the company managed to lower operating expenses by 25%. The discontinuation of stock sales under the ATM program and workforce reductions have enabled the company to achieve quarterly cost savings of over $0.5 million. These steps have contributed to a more manageable net loss, albeit within a constrained revenue environment.
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Key Business Metrics
Revenue Breakdown
Quell
Revenue from Quell, including both prescription-based Quell Fibromyalgia and OTC Quell Relief, grew 50% year over year, reaching $0.2 million compared to $0.1 million in the third quarter of 2023. This uptick is primarily due to expanding direct-to-physician marketing and partnerships with Veterans Health Administration facilities.
DPNCheck
DPNCheck, the company’s point-of-care screening tool for peripheral neuropathy, reported revenue of $0.4 million, a significant 58% decline from the third quarter of 2023. This drop was largely due to reduced demand within Medicare Advantage, the primary market for DPNCheck, as the CMS is phasing out certain risk-adjustment compensations.
Gross Profit
Gross profit for the third quarter of 2024 stood at $0.3 million, a decline from $0.8 million in the prior-year period. This was driven by lower sales volume and an unfavorable product mix shift. Additionally, production volume reductions contributed to the erosion in gross profit margins.
Operating Expenses
Operating expenses were $2.1 million, down 25% from $2.7 million in the third quarter of 2023. This decrease reflects cost-saving measures, including a reduction in force and the phasing out of the company’s legacy ADVANCE business.