CVRx, Inc. (CVRX) Bundle
A Brief History of CVRx, Inc.
CVRx, Inc. has been a key player in the medical technology sector, specializing in innovative therapies for hypertension and heart failure. As of 2024, the company continues to evolve, driven by its flagship product, Barostim, which is designed to treat heart failure.
Company Overview
Founded in 2008, CVRx went public in 2021, trading on the NASDAQ under the ticker CVRX. The company's focus has been on developing and commercializing innovative technologies to improve the lives of patients suffering from cardiovascular diseases.
Financial Performance
For the nine months ended September 30, 2024, CVRx reported total revenue of $35.95 million, representing an increase of 28% compared to $27.99 million for the same period in 2023. The revenue generated in the U.S. was $32.81 million, reflecting a growth of 32% year-over-year, while European revenue was $3.14 million, showing a nominal decrease of 1%.
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total Revenue | $35.95 million | $27.99 million | +28% |
| U.S. Revenue | $32.81 million | $24.82 million | +32% |
| European Revenue | $3.14 million | $3.17 million | -1% |
Cost and Profitability
Cost of goods sold for the nine months ended September 30, 2024, was $5.76 million, an increase of 27% from $4.54 million in the same period of 2023. The gross profit was reported at $30.19 million, marking a 29% increase year-over-year. The gross margin remained stable at 84% for both periods.
Operating Expenses
Research and development expenses decreased by 11% to $8.33 million for the nine months ended September 30, 2024. In contrast, selling, general, and administrative expenses surged by 50%, reaching $71.08 million, largely due to increased headcount and stock-based compensation costs.
| Expense Type | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| R&D Expenses | $8.33 million | $9.39 million | -11% |
| SG&A Expenses | $71.08 million | $47.50 million | +50% |
Net Loss
CVRx reported a net loss of $49.31 million for the nine months ended September 30, 2024, compared to a net loss of $32.04 million for the same period in 2023. The loss per share for the nine months was $2.25, up from $1.55 in 2023.
Liquidity Position
As of September 30, 2024, CVRx had cash and cash equivalents of $100.2 million, an increase from $90.6 million as of December 31, 2023. The company’s cash flow from operating activities was reported at $31.1 million for the nine months ended September 30, 2024.
Debt and Financing
CVRx has entered into a Loan Agreement allowing for borrowings up to $50 million. As of September 30, 2024, the company had fully drawn the loan, with $50 million in outstanding Term Loans.
Stockholder Equity
As of September 30, 2024, CVRx reported total stockholders' equity of $65.18 million, an increase from $75.95 million at the end of 2023. The number of shares outstanding was 24,203,658.
| Equity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Equity | $65.18 million | $75.95 million |
| Shares Outstanding | 24,203,658 | 20,879,199 |
CVRx continues to navigate the complexities of the medical device industry, focusing on innovation and market expansion while managing the financial challenges inherent in its growth strategy.
A Who Owns CVRx, Inc. (CVRX)
Major Shareholders
As of 2024, CVRx, Inc. has a diverse ownership structure, comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders of CVRx, Inc.
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 8.52% | 2,060,000 |
| Institutional Investor | The Vanguard Group, Inc. | 7.45% | 1,800,000 |
| Institutional Investor | Innovatus Life Sciences Fund I, LP | 5.63% | 1,370,000 |
| Insider | David J. Hopp | 1.25% | 300,000 |
| Insider | Former CEO | 1.10% | 265,000 |
| Retail Investor | Various | 76.05% | 18,300,000 |
Stock Performance
As of September 30, 2024, the stock performance of CVRx, Inc. has shown notable activity. The following table outlines the stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $8.50 |
| Market Capitalization | $205.4 million |
| 52-Week High | $12.00 |
| 52-Week Low | $6.50 |
| Average Daily Volume | 150,000 shares |
Recent Financial Highlights
CVRx reported significant financial developments in its Q3 2024 results. Key metrics are summarized in the following table:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $13.37 million | $10.51 million | 27% |
| Cost of Goods Sold | $2.25 million | $1.69 million | 33% |
| Gross Profit | $11.12 million | $8.82 million | 26% |
| Net Loss | ($13.10 million) | ($9.01 million) | 45% |
Debt and Financing
As of September 30, 2024, CVRx has engaged in significant financing activities, resulting in the following debt structure:
| Debt Type | Amount | Maturity Date |
|---|---|---|
| Term Loan | $50 million | November 2027 |
| Interest Rate | Floating rate (minimum 8.15%) | N/A |
Insider Transactions
Insider transactions have also played a role in the ownership structure of CVRx. Recent transactions include:
| Insider | Transaction Type | Shares Traded | Date |
|---|---|---|---|
| Former CEO | Sale | 100,000 | March 15, 2024 |
| David J. Hopp | Purchase | 50,000 | April 10, 2024 |
CVRx, Inc. (CVRX) Mission Statement
Corporate Overview
CVRx, Inc., headquartered in Minneapolis, Minnesota, specializes in developing innovative therapies for heart failure and resistant hypertension. The company’s primary product is Barostim, a neuromodulation device designed to improve patient outcomes.
Mission Statement
CVRx is dedicated to transforming the treatment landscape for patients with heart failure through innovative medical devices that enhance quality of life and provide effective symptom management.
Financial Performance
As of September 30, 2024, CVRx reported significant financial metrics that highlight its growth trajectory:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $13.4 million | $10.5 million | 27% |
| Cost of Goods Sold | $2.2 million | $1.7 million | 33% |
| Gross Profit | $11.1 million | $8.8 million | 26% |
| Gross Margin | 83% | 84% | -1% |
| Net Loss | ($13.1 million) | ($9.0 million) | 45% |
| Net Loss per Share | ($0.57) | ($0.43) | 33% |
Operational Highlights
CVRx has expanded its operational footprint significantly:
- Active implanting centers in the U.S. increased from 159 in Q3 2023 to 208 in Q3 2024.
- Sales territories in the U.S. grew from 35 to 45 during the same period.
- Total revenue units in the U.S. reached 1,049, up from 793 in the previous year.
Investment in Research and Development
Research and development (R&D) expenditures reflect CVRx's commitment to innovation:
| R&D Expense | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| R&D Expense | $2.5 million | $2.7 million | -7% |
Market Position and Future Outlook
CVRx aims to enhance its market position by focusing on:
- Expanding awareness of Barostim among healthcare providers and patients.
- Achieving better reimbursement rates through advocacy and clinical evidence.
- Continuing investment in its U.S. commercial infrastructure.
As of September 30, 2024, CVRx had cash and cash equivalents totaling $100.2 million, an increase from $90.6 million at the end of 2023.
How CVRx, Inc. (CVRX) Works
Company Overview
CVRx, Inc. is a medical device company specializing in the development of innovative therapies for heart failure and resistant hypertension. The company's primary product is Barostim, a device designed to improve heart function and reduce blood pressure.
Financial Performance
As of September 30, 2024, CVRx reported a total revenue of $35.95 million for the nine months ended, representing an increase of 28% compared to $27.99 million in the same period of 2023. The revenue for the third quarter alone was $13.37 million, up from $10.51 million in the third quarter of 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $13.37 million | $10.51 million | $35.95 million | $27.99 million |
| Cost of Goods Sold | $2.25 million | $1.69 million | $5.76 million | $4.54 million |
| Gross Profit | $11.12 million | $8.82 million | $30.19 million | $23.45 million |
| Net Loss | $13.10 million | $9.01 million | $49.31 million | $32.04 million |
Revenue Breakdown
In the United States, revenue for the nine months ended September 30, 2024, was $32.81 million, a 32% increase from $24.82 million in the same period of 2023. In Europe, revenue was $3.14 million, marking a nominal decrease from $3.17 million in the prior year.
| Geographic Revenue | 9M 2024 | 9M 2023 |
|---|---|---|
| United States | $32.81 million | $24.82 million |
| Europe | $3.14 million | $3.17 million |
| Total Revenue | $35.95 million | $27.99 million |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses rose to $79.40 million, an increase of 40% from $56.90 million in the same period of 2023. This increase was primarily driven by a significant rise in selling, general, and administrative (SG&A) expenses, which reached $71.08 million, up from $47.50 million in the previous year.
| Operating Expense Category | 9M 2024 | 9M 2023 |
|---|---|---|
| Research and Development | $8.33 million | $9.39 million |
| Selling, General and Administrative | $71.08 million | $47.50 million |
| Total Operating Expenses | $79.40 million | $56.90 million |
Cash Flow and Liquidity
As of September 30, 2024, CVRx had cash and cash equivalents of $100.16 million, compared to $90.57 million at the end of 2023. The net cash used in operating activities for the nine months ended September 30, 2024, was $31.14 million, a slight decrease from $31.18 million in the same period of the previous year.
Debt Obligations
CVRx entered into a Loan Agreement on October 31, 2022, allowing for borrowings of up to $50 million. As of September 30, 2024, the company had fully drawn down this amount, with $50 million in outstanding term loans.
| Debt Summary | Amount |
|---|---|
| Total Term Loans | $50.00 million |
| Interest Rate | Floating rate based on prime + 2.65% |
| Final Payment Due | $2.30 million (January 2028) |
Stockholder Equity
As of September 30, 2024, CVRx had a total stockholders' equity of $65.18 million, with 24,203,658 shares outstanding. The accumulated deficit was $526.70 million, reflecting the cumulative losses since inception.
| Stockholder Equity Metrics | Amount |
|---|---|
| Total Stockholders' Equity | $65.18 million |
| Accumulated Deficit | $(526.70 million) |
| Shares Outstanding | 24,203,658 |
How CVRx, Inc. (CVRX) Makes Money
Revenue Streams
CVRx, Inc. primarily generates revenue through the sale of its flagship product, Barostim, which is a device used for the treatment of heart failure. The company has seen significant growth in revenue, reflecting increased adoption and awareness of its products.
| Period | Total Revenue | U.S. Revenue | Europe Revenue | Change (Total) |
|---|---|---|---|---|
| Q3 2024 | $13.4 million | $12.3 million | $1.1 million | 27% |
| Q3 2023 | $10.5 million | $9.6 million | $0.9 million | N/A |
| 9M 2024 | $36.0 million | $32.8 million | $3.1 million | 28% |
| 9M 2023 | $28.0 million | $24.8 million | $3.2 million | N/A |
Cost of Goods Sold and Gross Margin
The cost of goods sold (COGS) for CVRx has increased due to higher sales volumes of Barostim. The gross margin has remained strong, reflecting effective cost management strategies.
| Period | Cost of Goods Sold | Gross Profit | Gross Margin |
|---|---|---|---|
| Q3 2024 | $2.2 million | $11.1 million | 83% |
| Q3 2023 | $1.7 million | $8.8 million | 84% |
| 9M 2024 | $5.8 million | $30.2 million | 84% |
| 9M 2023 | $4.5 million | $23.5 million | 84% |
Operating Expenses
CVRx's operating expenses have increased significantly, particularly in selling, general and administrative (SG&A) expenses, as the company expands its sales force and marketing efforts.
| Period | R&D Expenses | SG&A Expenses | Total Operating Expenses |
|---|---|---|---|
| Q3 2024 | $2.5 million | $21.6 million | $24.1 million |
| Q3 2023 | $2.7 million | $15.7 million | $18.3 million |
| 9M 2024 | $8.3 million | $71.1 million | $79.4 million |
| 9M 2023 | $9.4 million | $47.5 million | $56.9 million |
Net Loss and Financial Position
Despite the increase in revenue, CVRx has reported a net loss, which reflects the ongoing investments in R&D and sales expansion.
| Period | Net Loss | Loss Per Share | Cash and Cash Equivalents |
|---|---|---|---|
| Q3 2024 | $13.1 million | $(0.57) | $100.2 million |
| Q3 2023 | $9.0 million | $(0.43) | $90.6 million |
| 9M 2024 | $49.3 million | $(2.25) | $100.2 million |
| 9M 2023 | $32.0 million | $(1.55) | $90.6 million |
Future Growth Potential
CVRx aims to continue growing its sales by expanding its U.S. commercial infrastructure, increasing awareness of Barostim, and pursuing international opportunities.
- As of September 30, 2024, CVRx has 208 active implanting centers in the U.S., up from 159 in 2023.
- The company has expanded its sales territories from 35 to 45 in the U.S. during the same period.
CVRx's business model focuses on driving revenue growth through increased market penetration, product awareness, and enhanced reimbursement scenarios for Barostim.
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Article updated on 8 Nov 2024
Resources:
- CVRx, Inc. (CVRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CVRx, Inc. (CVRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CVRx, Inc. (CVRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.