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Form 8-K CVRx, Inc. For: Jul 28

July 28, 2022 4:22 PM EDT
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UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported):July 28, 2022

 

 

 

CVRx, Inc. 

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-40545   41-1983744
(State or other jurisdiction of
incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

 

9201 West Broadway Avenue, Suite 650 

Minneapolis, MN 55445 

(Address of principal executive offices) (Zip Code)

 

(763) 416-2840 

(Registrant’s telephone number, including area code)

 

N/A 

(Former name or former address, if changed since last report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)  

Name of each exchange

on which registered

Common stock, par value $0.01 per share

  CVRX   The Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On July 28, 2022, CVRx, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2022. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.

 

The information contained in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such a filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit  
No.   Description
99.1   Press release of CVRx, Inc., dated July 28, 2022
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CVRx, Inc. 

   
Date: July 28, 2022 By: /s/ Nadim Yared
    Name: Nadim Yared
    Its: President and Chief Executive Officer

 

 

 

Exhibit 99.1

 

CVRx Reports Second Quarter 2022 Financial and Operating Results

 

Second quarter 2022 revenue of $5.0 million, a 61% increase over prior year

 

MINNEAPOLIS, July 28, 2022 (GLOBE NEWSWIRE) -- CVRx, Inc. (“CVRx”), a commercial-stage medical device company focused on developing, manufacturing and commercializing innovative neuromodulation solutions for patients with cardiovascular diseases, today announced its financial and operating results for the second quarter of 2022.

 

Recent Highlights

 

·Total revenue for the second quarter 2022 was $5.0 million, an increase of 61% over prior year quarter

 

·U.S. Heart Failure (HF) revenue for the second quarter of 2022 was $3.8 million, an increase of 90% over prior year quarter

 

·Active implanting centers in the U.S. grew to 71, an increase of 27% over the first quarter of 2022

 

“I am very pleased with what we were able to accomplish in the second quarter. The adoption of Barostim continues to accelerate as we execute on our strategy to expand our sales force and leverage marketing initiatives to increase awareness while at the same time working with existing customers to help more patients,” said Nadim Yared, President and Chief Executive Officer of CVRx. “We anticipate a strong second half of the year as we continue to generate momentum across the organization. We remain focused on prudently expanding our commercial organization and promoting awareness of Barostim among physicians, hospitals and patients as a novel treatment for individuals suffering from cardiovascular disease.”

 

Second Quarter 2022 Financial and Operating Results

 

Revenue was $5.0 million for the three months ended June 30, 2022, an increase of $1.9 million, or 61%, over the three months ended June 30, 2021.

 

Revenue generated in the U.S. was $3.9 million for the three months ended June 30, 2022, an increase of $1.8 million, or 87%, over the three months ended June 30, 2021. Total HF revenue units in the U.S. totaled 128 and 67 for the three months ended June 30, 2022 and 2021, respectively.

 

HF revenue in the U.S. totaled $3.8 million for the three months ended June 30, 2022, an increase of $1.8 million, or 90%, over the three months ended June 30, 2021. The increase was primarily driven by continued growth as a result of the expansion into new sales territories, new accounts and increased physician and patient awareness of Barostim.

 

As of June 30, 2022, we had a total of 71 active implanting centers as compared to 31 as of June 30, 2021. Active implanting centers are customers that have completed at least one commercial HF implant in the last 12 months. As of June 30, 2022, the Company had a total of 20 sales territories as compared to eight as of June 30, 2021.

 

Revenue generated in Europe was $1.1 million for the three months ended June 30, 2022, an increase of $0.1 million, or 7%, over the three months ended June 30, 2021. Total revenue units in Europe were 52 for the three months ended June 30, 2022 as compared to 47 in the prior year period. The slight revenue increase was primarily due to the lessening impact of the COVID-19 pandemic in Germany, partially offset by an unfavorable currency impact on net sales. As of June 30, 2022, the Company had a total of six sales territories in Europe.

 

Gross profit was $3.8 million for the three months ended June 30, 2022, an increase of $1.6 million, or 73%, over the three months ended June 30, 2021. Gross margin increased to 76% for the three months ended June 30, 2022, compared to 71% for the three months ended June 30, 2021. Gross margin for the three months ended June 30, 2022 was higher due to a decrease in the cost per unit and an increase in the average selling price. This was partially offset by a larger percentage of our revenue units coming from full systems versus battery replacements. New patients receive a full system that includes an IPG and a stimulation lead, which has a lower gross margin than a stand-alone IPG used for a battery replacement.

 

 

 

 

R&D expenses increased $0.1 million, or 4%, to $2.4 million for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. This change was primarily driven by an increase in compensation expenses, mainly as a result of increased headcount, partially offset by a decrease in consulting expenses and non-cash stock-based compensation expenses.

 

SG&A expenses increased $6.9 million, or 122%, to $12.5 million for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. This was primarily driven by an increase in compensation expenses, mainly as a result of increased headcount, as well as increases in travel expenses, public company costs, marketing and advertising expenses associated with the commercialization of Barostim in the U.S., and non-cash stock-based compensation expenses.

 

Other expense, net was nominal for the three months ended June 30, 2022, compared to $11.4 million for the three months ended June 30, 2021. The expense in the second quarter of 2021 was primarily driven by the increase in fair value of the convertible preferred stock warrant liability from March 31, 2021 to June 30, 2021. As these preferred stock warrants converted to common stock warrants upon the IPO, there is no longer a change in fair value recorded in other expense, net.

 

Net loss was $11.1 million, or $0.54 per share, for the three months ended June 30, 2022, compared to a net loss of $17.7 million, or $48.48 per share, for the three months ended June 30, 2021. Net loss per share was based on 20,505,228 and 366,066 weighted average shares outstanding for the second quarter of 2022 and 2021, respectively.

 

At the end of the current quarter, cash and cash equivalents were $121.3 million. Net cash used in operating and investing activities was $10.1 million for the current quarter, compared to $6.8 million for the same period last year. We continue to prudently monitor our cash usage in support of our growth initiatives as we progress towards profitability.

 

Business Outlook

 

For the full year of 2022, the Company now expects:

 

·Total revenue between $20.5 million and $23.0 million as compared to prior guidance of $20.0 million and $23.0 million;

 

·Gross margin between 75% and 76% as compared to prior guidance of 74% and 76%;

 

·Operating expenses between $58 million and $61 million as compared to prior guidance of $55 million and $61 million;

 

For the third quarter of 2022, the Company expects to report total revenue between $5.5 million and $6.0 million.

 

Regulatory Update

 

During the second quarter, the Company received FDA approval for a new programmer, which provides even simpler programming software in a tablet form factor, and magnetic resonance (MR) conditional labeling, which allows MRI scanning with specific instructions for patients implanted with Barostim.

 

Webcast and Conference Call Information

 

The Company will host a conference call at 5:30 pm Eastern Time on July 28, 2022 to discuss results of the quarter as well as a question and answer session. The conference call will be broadcast live in listen-only mode via webcast at https://edge.media-server.com/mmc/p/8r349o6o. To listen to the conference call on your telephone, participants may register for the call here. While it is not required, it is recommended you join 10 minutes prior to the event start.

 

 

 

 

About CVRx, Inc.

 

CVRx is focused on the development and commercialization of Barostim™, the first medical technology approved by FDA that uses neuromodulation to improve the symptoms of patients with heart failure. Barostim is an implantable device that delivers electrical pulses to baroreceptors located in the wall of the carotid artery. Baroreceptors activate the body’s baroreflex, which in turn triggers an autonomic response to the heart. The therapy is designed to restore balance to the autonomic nervous system and thereby reduce the symptoms of heart failure. Barostim received the FDA Breakthrough Device designation and is FDA-approved for use in heart failure patients in the U.S. It has also received the CE Mark for heart failure and resistant hypertension in the European Economic Area. To learn more about Barostim, visit www.cvrx.com.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including statements regarding our financial guidance regarding full year and third quarter 2022 results and expectations about regulatory approvals, liquidity and cash resources and adoption of our Barostim therapy. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “outlook,” “guidance,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words.

 

The forward-looking statements in this press release are only predictions and are based largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of known and unknown risks, uncertainties and assumptions, including, but not limited to, our history of significant losses, which we expect to continue; our limited history operating as a commercial company and our dependence on a single product, Barostim; our ability to establish and maintain sales and marketing capabilities; our ability to demonstrate to physicians and patients the merits of our Barostim; any failure by third-party payors to provide adequate coverage and reimbursement for the use of Barostim; our competitors’ success in developing and marketing products that are safer, more effective, less costly, easier to use or otherwise more attractive than Barostim; any failure to receive access to hospitals; our dependence upon third-party manufacturers and suppliers, and in some cases a limited number of suppliers; a pandemic, epidemic or outbreak of an infectious disease in the U.S. or worldwide, including the outbreak of the novel strain of coronavirus, COVID-19; any failure of clinical studies for future indications to produce results necessary to support regulatory clearance or approval in the U.S. or elsewhere; product liability claims; future lawsuits to protect or enforce our intellectual property, which could be expensive, time consuming and ultimately unsuccessful; any failure to retain our key executives or recruit and hire new employees; and other important factors that could cause actual results, performance or achievements to differ materially from those that are found in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

 

Investor Contact:

 

Mark Klausner or Mike Vallie

ICR Westwicke

443-213-0501

[email protected]

 

Media Contact:

 

Erich Sandoval

Finn Partners

212-867-1762

[email protected]

 

 

 

 

CVRx, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

   June 30,   December 31, 
   2022   2021 
Assets          
Current assets:          
Cash and cash equivalents  $121,346   $142,072 
Accounts receivable, net   3,601    2,560 
Inventory   5,834    3,880 
Prepaid expenses and other current assets   1,155    2,585 
Total current assets   131,936    151,097 
Property and equipment, net   1,610    1,425 
Operating lease right-of-use asset   465     
Other non-current assets   26    26 
Total assets  $134,037   $152,548 
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable  $608   $510 
Accrued expenses   5,301    5,398 
Total current liabilities   5,909    5,908 
Operating lease liability, non-current portion   250     
Other long-term liabilities   732    681 
Total liabilities   6,891    6,589 
Commitments and contingencies          
Stockholders’ equity:          
Common stock, $0.01 par value, 200,000,000 authorized as of June 30, 2022 and December 31, 2021; 20,576,149 and 20,399,337 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively   206    204 
Additional paid-in capital   542,967    540,707 
Accumulated deficit   (415,816)   (394,754)
Accumulated other comprehensive loss   (211)   (198)
Total stockholders’ equity   127,146    145,959 
Total liabilities and stockholders’ equity  $134,037   $152,548 

 

 

 

 

CVRx, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)

 

   Three months ended   Six months ended 
   June 30,   June 30, 
   2022   2021   2022   2021 
Revenue  $5,031   $3,123   $9,107   $5,983 
Cost of goods sold   1,201    913    2,150    1,780 
Gross profit   3,830    2,210    6,957    4,203 
Operating expenses:                    
Research and development   2,355    2,255    4,613    4,005 
Selling, general and administrative   12,489    5,627    23,266    10,087 
Total operating expenses   14,844    7,882    27,879    14,092 
Loss from operations   (11,014)   (5,672)   (20,922)   (9,889)
Interest expense       (608)       (1,209)
Other expense, net   (34)   (11,442)   (91)   (15,234)
Loss before income taxes   (11,048)   (17,722)   (21,013)   (26,332)
Provision for income taxes   (23)   (26)   (49)   (43)
Net loss   (11,071)   (17,748)   (21,062)   (26,375)
Cumulative translation adjustment   (7)   (1)   (13)   (5)
Comprehensive loss  $(11,078)  $(17,749)  $(21,075)  $(26,380)
Net loss per share, basic and diluted  $(0.54)  $(48.48)  $(1.03)  $(72.58)
Weighted-average common shares used to compute net loss per share, basic and diluted   20,505,228    366,066    20,479,427    363,397 

 

 

 

 



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