KORU Medical Systems (KRMD) 7 Aug 24 2024 Q2 Earnings call transcript
AInvestThursday, Aug 8, 2024 10:49 pm ET
2min read
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KORU Medical Systems recently held its second quarter 2024 earnings call, highlighting the company's strong performance and strategic initiatives for the year. Here are the key takeaways from the call.

Financial Performance and Guidance

KORU Medical Systems reported a record-breaking quarter with revenues of $8.4 million, marking a 22% increase compared to the same period in 2023. The company's core business revenues grew by 20% driven by SCIg market growth, share gains, and geographic expansion. The Novel Therapies business also had a strong quarter with progress on several collaborations, including successful feasibility results for an oncology biologic and the entry into a Phase III trial for a nephrology indication.

For the remainder of the year, KORU Medical Systems expects revenues of $32 million to $32.5 million, representing 12% to 14% growth over the prior year. The company anticipates that its gross margin will be between 61% and 62% for the full year, despite facing inflationary pressures and margin expansion into lower ASP regions.

Strategic Initiatives

KORU Medical Systems is focused on expanding its core business, both domestically and internationally, and broadening its relevance with the addition of new drugs on its label. The company's recent promotion of Chris Pazdan to the role of Chief Operating Officer is a strategic move to provide focus and alignment for the company's pivotal product and program, growth, and operational targets.

KORU Medical Systems is also making progress in its novel therapy business, with 16 pipeline collaborations to date, including three signed this year. The company is on track to file a 510(k) for a commercialized oncology biologic in 2025 and has a rare disease biologic in development phase.

Market Opportunities and Challenges

KORU Medical Systems is well-positioned in the U.S. SCIg market, where it holds a leadership position. The company sees continued growth opportunities in this market with a market-wide shift towards SCIg as a preferred therapy and the recent FDA approval of an expanded label for a SCIg drug, Xembify, to include treatment-naive patients. The company also expects to continue its momentum with a new product 510(k) submission in Q4 aimed at improving comfort and convenience for patients.

Investor Questions and Answers

During the Q&A session, investors asked about prefilled syringe penetration, the impact of the Xembify label expansion, and the company's expansion into Japan. KORU Medical Systems provided insight into these topics, highlighting the importance of prefilled syringes in the market, the potential impact of the Xembify label expansion, and the company's strategy for entering the Japanese market.

Overall, KORU Medical Systems' second quarter earnings call highlighted the company's strong financial performance, strategic initiatives, and growth opportunities. The company's focus on expanding its core business, entering new markets, and developing novel therapies positions it well for future success.

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